Following renewed tension in the Middle East, risk assets were under overall pressure and the Stellar token XLM continued to weaken on Tuesday. Market funds are shifting in the direction of risk avoidance, and there is widespread pressure on the banknotes and the XLM has fallen near critical support areas.

High oil prices to suppress risk preferences

The latest United States military operations in the Middle East have reportedly exacerbated tensions between the United States and Iran. The Iranian side has also heard of attacks in the southern region, while the Islamic Revolutionary Guard Corps has indicated that two super tankers in the Straits of Hormuz were stopped and warned that regional military operations might affect the resumption of this critical route.

As geo-risk heat rises, the price of WTI crude oil breaks by $80 per barrel, which increases the risk-averse sentiment in the global market. For the encrypted market, this usually means that funds are more inclined to reduce the exposure to volatile assets, and that the amount of pressure on the banknote is often more pronounced.

Derivatives hold back.

The CoinGlass data show that the XLM open contract has been reduced to approximately $182.2 million, continuing the downward trend after June. Declines in prices are accompanied by a decrease in silos, which usually means that some traders are getting out of the field, rather than continuing to.

The financial rate has also been turned negative and is currently about -0.0021 per cent. This reflects an increase in demand for space slots and a cautious short-line mood in the sustainable contract market.

  • Unsettled contracts: approximately $182.2 million
  • Funding rate: approximately -0.0021 per cent
  • Area of current price: approximately $ 0.179

0.177 becomes short-line key position

In terms of price, XLM is currently operating below the main average, and short-line kinetic energy is still weak. It is mentioned that EMA on 50, 100 and 200 days constitutes continuous resistance above at 0.186, 0.190 and 0.196 respectively.

The first critical support position is close to $0.177, followed by approximately $0.173. If sales pressure continues to increase, prices may be further lowered. If the buy-back rises, the market will need to be back on top of 0.186 dollars before it can be expected to alleviate the current pattern of vulnerability.