Stellar and Pyth Outperform as Crypto Jitters Persist

Key Moments

Macro Backdrop Weighs on Crypto Sentiment

The overall cryptocurrency complex trades under pressure, with Bitcoin (BTC) changing hands below $59,000 at press time on Wednesday. The market tone is cautious as US President Donald Trump weighs the option of a full-scale military confrontation with Iran but instead chooses to continue diplomatic engagement.

Within this risk-off backdrop, Stellar (XLM) and Pyth Network (PYTH) have broken away from the broader trend, emerging as the strongest performers over the past 24 hours.

Investors Stay Defensive as Geopolitical Risks Linger

Digital asset investors remain largely on the sidelines while Bitcoin struggles to reclaim the $60,000 mark amid worries about a possible renewed US-Iran conflict. CoinMarketCap’s Fear and Greed Index holds near 17, signaling persistent Extreme Fear in the market.

US President Donald Trump held multiple meetings with Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff Gen. Dan Caine about a return to all-out war with Iran, as previously reported by FXStreet. However, Trump has decided to stick with the diplomatic route for now, keeping the 60-day ceasefire over the Strait of Hormuz intact.

Bitcoin Holds Key Support but Bias Stays Bearish

Bitcoin currently trades just above the June 25 low of $58,115 after shedding roughly 3% in the prior session, retaining a bearish tone. Momentum indicators signal fragility, with the Moving Average Convergence Divergence (MACD) and signal line moving sideways, and the Relative Strength Index (RSI) at 31 hovering just above oversold territory. This setup implies that any near-term bounce would likely be corrective within an ongoing downward structure.

A clear daily close below $58,115 would open the door for a move toward the July 5, 2024 support level at $53,485.

On the upside, initial resistance is located at the horizontal $60,000 area, with the 50-day Exponential Moving Average (EMA) around $66,343 acting as a broader ceiling on any recovery attempts.

Stellar Extends Advance Above Key Moving Averages

Stellar has built on its momentum, adding 6% at press time on Wednesday after an 8% rally the previous day. XLM has moved above both the 50-day EMA at $0.1897 and the 200-day EMA at $0.1974, leaving the short-term technical stance mildly constructive.

The RSI around 54 signals positive but not stretched momentum, while a rising MACD line points toward a potential bullish crossover with the signal line. This pattern suggests improving upside traction, though not yet a forceful breakout.

A firm close above the 200-day EMA at $0.1974 would strengthen the bullish case and could allow XLM to revisit the $0.2500 round number, which acted as resistance on June 18.

On the downside, the 200-day EMA around $0.1974 serves as initial support. Below that, the 50-day EMA near $0.1897 defines a deeper demand area where buyers may look to reenter.

Pyth Network Marks Third Straight Session of Gains

Pyth Network is staging a steadier recovery, logging a third consecutive winning session as price tests the 50-day EMA at $0.03854. At the time of writing, PYTH is trading above the 23.6% Fibonacci retracement level at $0.03529, calculated from the downswing between $0.06310 and $0.02950.

Both the MACD and signal line are turning higher, with expanding positive histograms, while the RSI reading of 54 signals moderately improving momentum.

On the upside, initial resistance aligns with the 50-day EMA near $0.0385, while the 50% retracement level at $0.04314 forms the next hurdle for bulls.

On the downside, the 23.6% retracement at $0.03529 offers the first support zone. A more pronounced pullback would bring the swing low at $0.02950 into focus as the next significant demand region.