Ripple and Stellar outlook: Bears retain control as XRP and XLM fall further

  • Below $1.093 on Tuesday, XRP continues to decline as sellers target the psychological $1.00 mark.
  • Following last week’s close beneath key support, XLM changes hands near $0.146, leaving it more exposed to further declines.
  • Further declines in XRP and XLM are signalled by softer on-chain activity, worsening derivatives metrics and bearish momentum readings.

Below $1.093 for Ripple (XRP) and near $0.146 for Stellar (XLM), Tuesday’s prices reflect continued pressure as sellers retain the upper hand on momentum. Deteriorating on-chain and derivatives metrics also point to the risk of a more pronounced correction in both XRP and XLM over the coming days.

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On-chain indicators point to further weakness

A bearish picture for both altcoins emerges from CryptoQuant’s summary data. Large whale orders and a predominance of selling characterise XRP’s spot and futures markets. Conditions in the spot market are also heating up, underscoring the cautious, bearish bias among Ripple traders.

Summary chart for XRP. Source: CryptoQuant

Selling likewise dominates XLM’s spot and futures markets, pointing to a pessimistic view among Stellar traders.

Summary chart for XLM. Source: CryptoQuant

The signals from derivatives metrics, however, are mixed. On Tuesday, CoinGlass’ XRP long-to-short ratio moved into positive territory at 1.02, pointing to a mildly bullish outlook.

By contrast, Tuesday’s reading of 0.64 left XLM’s long-to-short ratio in negative territory and at its lowest in over a month. When the ratio is below one, it signals bearish sentiment, with traders positioning for a fall in asset prices.

Chart of XRP’s long-to-short ratio. Source: Coinglass
Chart of XLM’s long-to-short ratio. Source: Coinglass

XRP technical outlook: Sellers target $1 as further declines threaten

At $1.093 on Tuesday, XRP remains in a bearish phase. The price sits well beneath the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which are grouped between approximately $1.290 and $1.370.

A Relative Strength Index (RSI) reading near 26 places XRP firmly in oversold territory, while the Moving Average Convergence Divergence (MACD) stays negative. Together, these indicators point to selling pressure retaining the upper hand, although stretched conditions mean short-term rebounds cannot be excluded.

Any recovery would first encounter resistance at $1.160. Beyond that lies a concentrated resistance zone, where the 50-day EMA at $1.294 meets the horizontal barrier at $1.300 and the 100-day EMA at $1.303. The longer-term 200-day EMA at $1.365 adds weight to the broader bearish pattern, ahead of additional obstacles at $1.540 and $1.900.

Should the prevailing downtrend continue, the next significant support is the psychological $1.000 zone, where buyers may try to stem the fall.

Daily chart of XRP/USDT

XLM technical outlook: Sellers retain the upper hand

Trading at $0.146 on Tuesday, XLM retains a bearish short-term bias. Following a prolonged retreat from the $0.190 region, the price remains below the 50-day, 100-day and 200-day EMAs, grouped between approximately $0.175 and $0.186, reinforcing the overhead resistance structure.

With the RSI close to 30, conditions appear oversold. Nevertheless, the negative MACD indicates that downward momentum continues, even though selling pressure may be starting to fade.

A rebound would initially face the previous horizontal resistance near $0.153, followed by $0.173, with the 50-day EMA at $0.175 providing a nearby technical ceiling. Further up, a more concentrated supply zone is formed by the 100-day EMA at $0.180 and the 200-day EMA near $0.186. Beyond this zone, the next significant resistance is the higher horizontal level around $0.234.

The horizontal floor near $0.139 provides immediate support. A daily close beneath it would leave the pair vulnerable to a deeper pullback, notwithstanding the already stretched momentum conditions.

Daily chart of XLM/USDT

(The technical analysis of this story was written with the help of an AI tool. Find out more.)