Ripple and Stellar outlook: XRP and XLM build on recovery as bearish momentum fades

• A close above the upper trendline of a falling channel pattern has helped XRP build on its gains, with the token trading above $1.30 on Thursday.
• Above $0.168, XLM advances towards its next key resistance level at $0.173.
• Both altcoins have scope to recover further as derivatives metrics improve and momentum strengthens modestly.

With XRP above $1.30 and XLM holding above $0.168, Ripple (XRP) and Stellar (XLM) continue to recover on Thursday as bearish pressure on both altcoins starts to subside. XRP has broken through the upper trendline of a falling channel pattern, while XLM is nearing resistance at $0.173. Firmer momentum indicators and improving derivatives metrics also suggest that the recovery could extend.

Derivatives metrics show modest improvement

Conditions for Ripple and Stellar have improved slightly, according to derivatives data. As the CoinGlass chart below illustrates, funding rates for both altcoins turned positive on 30 October before climbing to 0.0093% for XRP and 0.0084% for XLM on Thursday. With long positions paying short positions, these positive readings point to a mildly bullish outlook.

XRP’s potential recovery nevertheless remains constrained by bearish positioning. CoinGlass’ long-to-short ratio for the token stayed in negative territory at 0.85 on Thursday. Readings below one signal bearish sentiment, with traders positioning for asset prices to decline.

By contrast, XLM’s long-to-short ratio moved into positive territory at 1.05 on Thursday, pointing to a modestly bullish outlook.

XRP technical outlook: Price retains a mildly constructive bias

At $1.308 on Thursday, XRP retains a mildly constructive bias following a close above the falling channel pattern’s upper trendline. Its key Exponential Moving Averages (EMAs), however, continue to constrain the price. Overhead resistance comes from the 100-day EMA at $1.323, the 50-day EMA at $1.335 and the 200-day EMA at $1.378, leaving the pair capped despite slightly firmer momentum. 

A reading of 48 places the Relative Strength Index (RSI) close to neutral. Meanwhile, the Moving Average Convergence Divergence (MACD) line sits just above zero following a positive crossover. This suggests that downward pressure is easing, although the dominant overhead resistance structure has yet to be overcome.

The previously breached upper trendline provides immediate support around $1.265. Should XRP close below it on a daily basis, deeper support at $1.160 and $1.000 would come into view.

The first upside hurdle is the 100-day EMA at $1.323, followed by the 50-day EMA at $1.335 and the 200-day EMA at $1.378. Only a sustained break above these moving averages would temper the bearish bias and clear a path towards the next horizontal resistance levels at $1.540 and $1.900.

XLM technical outlook: Selling pressure begins to ease

Trading at $0.169 on Thursday, XLM remains under pressure beneath its 50-day, 100-day and 200-day EMAs, at $0.182, $0.184 and $0.191 respectively. Together, these averages restrict gains and maintain a bearish bias for the near term.

Demand remains subdued, with the Relative Strength Index (RSI) around 42. Although the Moving Average Convergence Divergence (MACD) has edged into positive territory, the signal points to weakening bearish momentum rather than a reversal while the price remains below these key averages.

A horizontal barrier near $0.173 marks the first upside resistance. Beyond it lie the 50-day EMA at $0.182, the 100-day EMA at $0.184 and then the 200-day EMA at $0.191. Further out, $0.234 represents a stronger supply zone should buyers regain control.

The next significant downside support lies around the horizontal level at $0.153. A break below this level would likely leave the pair vulnerable to a deeper correction, notwithstanding the improvement in the MACD.

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