The cryptocurrency market started the week bearish, with most mainstream assets showing losses. Over the past 24 hours, the market has continued to consolidate, with Bitcoin's trading price still around $115,000.
The market capitalization-leading altcoin Ether also failed to break through $4,300 and is currently at risk of dropping to the $4,100 region. Stellar (XLM) has performed well in recent weeks but is currently experiencing a pullback.
Despite positive news from the Stellar ecosystem later on Monday, its performance still appears bearish.
Stellar Development Foundation invests in Archax
XLM is the native currency of the Stellar ecosystem and has decreased by 1% in the past 24 hours.
Despite the Stellar Development Foundation (SDF), which supports the Stellar blockchain, announcing on Monday that it has invested in the UK digital asset exchange and tokenization company Archax, the market still showed bearish performance.
This investment is part of a broader partnership aimed at promoting the development of tokenized real-world assets (RWA). Additionally, Archax has integrated the Stellar network into its internal tokenization platform and launched a tokenized Aberdeen money market fund.
Although the two companies did not disclose the scale of the investment, Raja Chakravorti, Chief Business Officer of the Stellar Development Foundation, pointed out that the construction of the Stellar network aims to achieve fast settlement times, low costs, and the tokenization of real-world assets, which is the future of finance.
If the support level of $0.40 is maintained, XLM may recover to $0.45
The XLM/USD 4-hour chart is bearish, as Stellar has dropped over 7% in the past seven days. Bitcoin is experiencing a pullback after reaching an all-time high last week, resulting in poor performance.
As of the time of publication, the trading price of XLM is $0.4044, with bulls maintaining the price near the support level of $0.40 over the past few hours. Technical indicators show that bullish momentum is weakening, and if bulls fail to regain control of the market, XLM may face further selling pressure.
The Relative Strength Index (RSI) is at 40, indicating that sellers currently control the XLM market. However, XLM has not yet entered the oversold territory, so bulls are expected to regain control of the market in the short term.
Additionally, the MACD line has crossed into negative territory, indicating that bearish momentum is shifting.
If the bearish trend continues, XLM may fall below the support level of $0.40 and test the $0.36 region for the second time this month. If it fails to hold this level, XLM may drop to the support level of $0.22 for the first time since July 2.
However, bulls may regain control of the market, allowing XLM to recover the resistance level of $0.45 in the short term. If bullish momentum continues, XLM may reclaim the July high of $0.52.
