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crypto.news 2025-07-05 19:00:00

XLM price at risk as Stellar Lumens’ funding rate crashes

The Stellar Lumens token is at risk of further downside as its funding rate continues to decline. Despite strong on-chain growth—rising transactions, record stablecoin supply, and expanding real-world asset tokenization—Stellar Lumens ( XLM ) plunged to a critical support level amid a sustained negative funding rate, suggesting growing bearish pressure. If this support breaks, XLM could fall another 36%, underscoring the widening disconnect between network fundamentals and market sentiment. This week, Stellar dropped to the key support at $0.2175. That’s down by 35% from its highest point in May. It has also dropped by 62% from its 2024 high. XLM could be at risk of a steeper bearish breakdown as its funding rate crashed to its lowest level since June 30. It has remained in the negative zone on most days since May. A funding rate is a small fee exchanged between long and short traders in perpetual futures contracts to balance the market. A negative rate means that there are more short positions than long positions, with short traders paying long traders. Stellar funding rate | Source: Santiment Still, on the positive side, third-party data shows that the network is doing well. According to Artemis , the number of operations on Stellar rose to 197 million in June, while the stablecoin supply soared to a record high of $667 million. Additional data indicates that the total value locked in real-world asset tokenization has risen to $487 million. It has jumped in the last five consecutive months, helped by the Franklin OnChain US Government Money Market Fund. You might also like: Maple SYRUP price eyes rebound as smart money piles in Meanwhile, Nansen data shows that the number of transactions jumped by 11% in the last seven days to 18.2 million. The number of active addresses in the network rose by 10% to 146,700. XLM price technical analysis Stellar price chart | Source: crypto.news The daily chart shows that the Stellar Lumens token price dropped to a key support level at $0.2175, a notable point that coincided with the lowest point in April, when most altcoins also plummeted. The support level was the lower side of the descending triangle pattern, a popular bearish continuation pattern. It has moved below the 61.8% Fibonacci Retracement level, where most rebounds happen. XLM price has dropped below the 50-day and 100-day Exponential Moving Averages. Therefore, a move below the lower side of the triangle will indicate further downside, with the next key level to watch being at $0.15, which is 36% below the current level. Read more: Trump-backed WLFI moves toward market debut with tradability vote

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