{"id":78796,"date":"2025-07-07T13:00:58","date_gmt":"2025-07-07T13:00:58","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=78796"},"modified":"2025-07-07T13:00:58","modified_gmt":"2025-07-07T13:00:58","slug":"xlm-traders-beware-stellars-funding-rate-is-plummeting","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=78796","title":{"rendered":"XLM Traders, Beware! Stellar\u2019s Funding Rate Is Plummeting"},"content":{"rendered":"

Stellar Lumens hit a critical support level this week at $0.20, putting the token in a precarious spot. At that price, XLM sits 30% below its peak in May and 60% under its 2024 high.<\/p>\n

Based on reports, bears have been piling on, pushing the funding rate into negative territory since early June. If that support gives way, traders warn XLM<\/a> could slide toward $0.15, a drop of about 35%.<\/p>\n

Network Activity Up<\/h2>\n

According to Artemis<\/a>, operations on the Stellar network surged to 197 million in June. Stablecoin supply also reached a record $667 million.<\/p>\n

Over the past five months, the total value locked in real\u2011world asset tokenization grew to $487 million, helped by new offerings such as the Franklin OnChain US Government Money Market Fund. Those figures suggest healthy demand for on\u2011chain services and asset tokenization inside Stellar\u2019s ecosystem.<\/p>\n

Funding Rates Down<\/h2>\n

Funding rates<\/a> in perpetual futures have been negative most days since May. That means more short positions than long ones, with short traders paying long traders to keep their bets in place.<\/p>\n

XLM\u2019s funding rate hit its lowest point<\/a> since June\u202f30, pointing to rising bearish sentiment. When funding rates stay deep in the red, it often adds selling pressure as traders brace for steeper losses.<\/p>\n

The image above shows that XLM funding rates are down on most major exchanges, particularly for stablecoin-margined pairs, data from Coinalyze shows.<\/p>\n

On\u2011Chain Growth Clashes With Market Mood<\/p>\n

Nansen data shows the number of transactions rose by 11% over the last seven days to 182 million. Active addresses climbed 10% to 146,700 in the same span.<\/p>\n

Even so, price action has ignored these gains. XLM fell beneath its 50\u2011day and 100\u2011day Exponential Moving Averages, and momentum appears to favor sellers.<\/p>\n

Some market watchers suggest that deep negative funding could trigger a short squeeze, turning sentiment around if shorts rush to cover.<\/p>\n

Chart Patterns Warn Of Drop<\/p>\n

The daily chart reveals a descending triangle pattern, with $0.21 forming the lower trendline. That level also marked April\u2019s lows when altcoins broadly sold off.<\/p>\n

XLM has slipped below the 60% Fibonacci Retracement zone, where many traders expect a bounce. A clean break under the triangle could unleash algorithm\u2011driven orders, sending price toward $0.15.<\/p>\n

Meanwhile, Stellar\u2019s fundamentals look solid, but technical signals remain bearish. Traders and holders should watch that $0.21 line. A strong rebound there could restore confidence in on\u2011chain strength.<\/p>\n

On the flip side, a slide through support may spark faster losses. Either way, XLM\u2019s near\u2011term path hinges on that key level.<\/p>\n

Featured image from Meta, chart from TradingView<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Stellar Lumens hit a critical support level this week at $0.20, putting the token in a precarious spot. At that price, XLM sits 30% below its peak in May and 60% under its 2024 high. Based on reports, bears have been piling on, pushing the funding rate into negative territory since early June. If that […]<\/p>\n","protected":false},"author":0,"featured_media":78797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-78796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/78796"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=78796"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/78796\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/78797"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=78796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=78796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=78796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}