During the Asian session, the crypto market experienced a noticeable wave of selling. Stellar(XLM) and Ripple(XRP) led the decline, with drops approaching 5% and 6% respectively, and the altcoins' downward momentum was particularly fierce.

From the liquidation data, over $465 million in positions were liquidated within 24 hours, with longs being hit the hardest, accounting for more than half. This is in stark contrast to the previous two days when longs were heavily liquidated, indicating a rapid reversal in market sentiment.

Open interest in XLM futures declined by 11.79%, falling to $142.74 million. However, in the broader market context, global crypto futures open interest remains above $1.43 billion—its highest level in nearly two months. Funding rates remain mildly positive, suggesting that despite short-term volatility, bullish market expectations have not yet collapsed.

Looking back, XLM only surged 8% on Monday, breaking above the 50-day moving average for the first time since October last year. That day, the price jumped from $0.229 to $0.254, a very sharp move. By Tuesday, the price was pressured around $0.255, then retreated to the $0.233 range.

From a technical perspective, holding the 50-day moving average is crucial. If this support level can be maintained, the next upward wave could restart. Otherwise, the market may continue to bottom out.