Ripple and Stellar outlook: Why are XRP and XLM extending losses as bears retain control?

• Bearish pressure keeps XRP below $1.093 on Tuesday as its decline continues, bringing the psychological $1.00 level into sellers’ sights.
• Downside risks have increased for XLM following last week’s close below key support, with the token trading near $0.146.
• Further declines appear likely for XRP and XLM as on-chain activity softens, derivatives metrics worsen and momentum indicators retain a bearish bias.

Selling pressure continues to weigh on Ripple (XRP) and Stellar (XLM), with bears retaining control of momentum. On Tuesday, XRP trades below $1.093, while XLM hovers around $0.146. Softer on-chain activity and weakening derivatives metrics also point to the risk of a deeper correction in both tokens over the coming days.

What do weaker on-chain metrics signal?

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

Seller dominance is also evident across XLM’s spot and futures markets, pointing to a negative outlook among Stellar traders.

The signals from derivatives metrics are mixed, however. For XRP, CoinGlass’ long-to-short ratio moved into positive territory at 1.02 on Tuesday, reflecting a modestly 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. Readings below one reflect bearish sentiment, with traders positioning for a fall in asset prices.

XRP technical outlook: Could losses deepen as bears target $1?

The bearish phase in XRP continues on Tuesday, with the token trading at $1.093. Its price remains well beneath the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which are grouped between roughly $1.290 and $1.370.

Selling pressure remains dominant, as indicated by a negative Moving Average Convergence Divergence (MACD). Meanwhile, the Relative Strength Index (RSI) is deeply oversold near 26, leaving open the possibility of short-term rebounds from these stretched conditions.

Any recovery would first encounter resistance at $1.160. Beyond this 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 further underpins the broader bearish structure, while additional obstacles stand at $1.540 and $1.900.

Should the prevailing downtrend continue, the next significant support lies in the psychological $1.000 region, where buyers may try to stem the decline.

XLM technical outlook: Can bears retain control?

A bearish near-term bias persists in XLM, which trades at $0.146 on Tuesday following a sustained retreat from the $0.190 region. The price remains below the 50-day, 100-day and 200-day EMAs, grouped between roughly $0.175 and $0.186, reinforcing the technical ceiling on the token.

Although an RSI reading near 30 points to oversold conditions and selling pressure may begin to fade, the negative MACD indicates that downside momentum remains in place.

A recovery would initially face the earlier horizontal barrier 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 comprises the 100-day EMA at $0.180 and the 200-day EMA near $0.186. Beyond this zone, the next significant resistance lies at the higher horizontal level around $0.234.

The horizontal floor near $0.139 provides immediate downside support. Despite momentum already being stretched, a daily close beneath this level would leave the pair vulnerable to a deeper retracement.

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