Ripple and Stellar outlook: Can XRP and XLM halt declines as bearish signal strengthens?

• Selling pressure persists in XRP on Tuesday, with bearish momentum keeping the price near $1.25.
• The risk of a deeper correction looms as XLM adds to its losses and trades below $0.162.
• Recovery attempts in both altcoins face constraints from mixed derivatives signals, bearish on-chain data and deteriorating technical indicators.

Recovery attempts face persistent selling pressure in Ripple (XRP) and Stellar (XLM) on Tuesday. With sellers retaining the upper hand, XRP trades near $1.25, while XLM's continued fall below $0.162 heightens the risk of a deeper correction. The combination of mixed derivatives readings, bearish on-chain data and deteriorating technical indicators also points to further downside risk for both altcoins.

Can a Recovery Take Hold With Mixed Derivatives Signals?

Conditions in the derivatives market are deteriorating for Ripple and Stellar. On Tuesday, CoinGlass reports long-to-short ratios of 0.90 for XRP and 0.98 for XLM. Readings below one reflect bearish sentiment, with traders positioning for a decline in asset prices.

Funding rates offer a contrasting signal. After turning positive on 30 October, they stand at 0.0065% for XRP and 0.0085% for XLM on Tuesday. Positive funding means long-position holders are paying short-position holders, pointing to a mildly bullish outlook.

What Do Bearish On-Chain Readings Suggest?

A bearish picture for both altcoins emerges from CryptoQuant's summary data. Large whale orders and seller dominance feature in XRP's spot and futures markets. Heating conditions in the spot market further underline the cautious, bearish bias among Ripple traders.

Seller dominance also characterises XLM's spot and futures markets, pointing to a downbeat outlook among Stellar traders.

XRP Technical Outlook: Can Price Break Out of Consolidation Below Key EMAs?

Trading at $1.251 on Tuesday, XRP retains a bearish short-term bias below its 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which stand at $1.336, $1.324 and $1.365, respectively. Downside pressure is further reinforced by the price remaining beneath upper trendline resistance at $1.285 and the horizontal hurdle at $1.3000.

A Relative Strength Index (RSI) reading near 37 points to muted momentum, rather than oversold conditions. Sellers also retain control of the short-term direction, according to the slightly negative Moving Average Convergence Divergence (MACD).

Any advance would first encounter trendline resistance near $1.285, followed by the horizontal hurdle at $1.300. Beyond that, a dense supply zone comprises the EMAs at $1.324 and $1.336, followed by the 200-day EMA at $1.365. Further resistance lies at $1.540 and $1.900.

The closest downside support lies at $1.160. Below it, the deeper structural floor at $1.000 is where buyers would be expected to emerge to resist further declines.

XLM Technical Outlook: Can Buyers Challenge Bearish Control?

A bearish short-term bias persists in XLM, which trades at $0.161 on Tuesday below the 50-day, 100-day and 200-day EMAs grouped between roughly $0.183 and $0.189. Following its recent break below former support at $0.173, XLM continues to retreat. The RSI near 34 signals weak momentum without extreme downside conditions, while the marginally negative MACD reinforces limited upside prospects as long as the EMAs remain above the price.

An upward move would initially face the horizontal hurdle near $0.173. The tightly grouped EMAs at $0.183, $0.185 and $0.189 then provide structural supply, with a firmer ceiling near $0.234.

Recent trading around $0.161 marks immediate support. More substantial demand lies at $0.153, where the previous swing low coincides with the trendline anchor. A sustained breach of that latter level would likely pave the way for a deeper decline.

(An AI tool assisted in preparing the technical analysis in this article. Learn more.)