XLM drops 11% as shorts dominate while CMF hints at possible accumulation

Beincrypto reports Stellar’s XLM crashed 11% after a bearish chart pattern validated, reinforcing short-term downside risks for the altcoin.

Derivatives data show market positioning skewed roughly 68% toward short traders, and a dense cluster of long liquidation leverage sits between $0.20 and $0.185, which could trigger forced liquidations and add selling pressure. At the same time, the Chaikin Money Flow formed higher lows for four consecutive days even as XLM printed lower lows, a bullish divergence that suggests accumulation beneath the surface. XLM trades near $0.212 at the time of writing, holding just above the $0.210 support level.

A breakdown from a descending triangle projects a potential 14% drop toward $0.188, though support may emerge around $0.210 or, at worst, near $0.201. A shift in momentum depends on defending key levels: if $0.210 holds, XLM could stabilise and a sustained bounce toward the $0.230 resistance would invalidate the bearish pattern and signal a short-term reversal. This analysis is for informational purposes only.

Key Topics

Crypto, Stellar, Xlm, Chaikin Money Flow, Coinglass, Descending Triangle