Ripple and Stellar face further pressure as bearish momentum weighs on XRP and XLM

• Below $1.30 on Tuesday, XRP retains a bearish short-term bias, with key EMAs continuing to limit its price.
• Following a modest recovery the day before, XLM trades below $0.169 on Tuesday as selling pressure persists.
• Both altcoins face constraints from fading momentum, mixed derivatives signals and caution in on-chain indicators.

With prices below $1.30 and $0.169 respectively on Tuesday, Ripple (XRP) and Stellar (XLM) remain under pressure despite a modest recovery the previous day. Trading beneath their key Exponential Moving Averages (EMAs), both tokens continue to exhibit bearish price action. A lasting recovery in XRP and XLM is also being restrained by conflicting derivatives signals and cautious on-chain readings.

Rebound faces limits from mixed derivatives signals

For Ripple and Stellar, derivatives figures point to deteriorating conditions. On Tuesday, CoinGlass’ long-to-short ratios stand at 0.77 for XRP and 0.91 for XLM, approaching their lowest readings in over a month. Readings below one signal bearish sentiment, reflecting traders’ bets on falling asset prices.

Funding rates offer a contrasting signal. Having turned positive on 16 October for XRP and on Monday for XLM, they stand at 0.0100% and 0.0045%, respectively, on Tuesday. This means long positions are paying short positions, pointing to a mildly bullish outlook.

Despite those positive funding rates, bearish positioning suggests that sentiment across derivatives markets remains cautious. This divergence continues to constrain a sustained recovery in XRP and XLM.

On-chain indicators signal caution

A bearish outlook for both altcoins emerges from CryptoQuant’s summary data. In XRP’s spot and futures markets, large whale orders coincide with heating market conditions and seller dominance, highlighting a cautious, bearish bias among Ripple traders.

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

Institutional demand loses ground

Monday’s $3.61 million outflow from XRP spot Exchange Traded Funds (ETFs) marked a weak start to the week for institutional demand, according to SoSoValue data. XRP could undergo a deeper correction if outflows persist and gather pace over the course of the week.

XRP technical outlook: Key EMAs constrain price

At $1.300 on Tuesday, XRP remains beneath its key Exponential Moving Averages (EMAs), leaving the near-term outlook bearish. Layered dynamic resistance lies overhead at the 100-day EMA of $1.333, the 50-day EMA of $1.360 and the 200-day EMA of $1.369. Rebounds are therefore likely to meet resistance while the pair trades below this cluster.

A Relative Strength Index (RSI) reading near 40 points to subdued momentum, while the Moving Average Convergence Divergence (MACD) remains below zero. Although the MACD has improved recently, this suggests easing downward pressure rather than a decisive turn towards bullish conditions.

The first upside hurdle is the 100-day EMA at $1.333. Beyond it, resistance lies at the 50-day EMA of $1.360 and the 200-day EMA of $1.369, with horizontal levels at $1.540 and then $1.900 further above.

Just beneath the current price, the horizontal level of $1.300 provides nearby support, where buyers may seek to defend the recent trading range. A decisive breach would likely leave XRP vulnerable to further losses and keep it within its broader corrective phase.

XLM technical outlook: Bears retain momentum control

Trading at $0.168 on Tuesday, XLM extends its retreat beneath all key EMAs, preserving a bearish short-term bias. The 50-day, 100-day and 200-day EMAs form a concentrated resistance zone at roughly $0.188 to $0.190. Rallies are likely to face difficulty as long as the price remains below this cluster. 

At around 34, the daily RSI is approaching oversold territory. The MACD, meanwhile, remains negative despite a slight improvement, suggesting that downward momentum is easing rather than confirming a bottom.

The horizontal level near $0.173 presents the first upside resistance, followed by the EMA cluster around $0.188–$0.190. Together, these barriers reinforce the broader bearish structure.

Should buyers seek a more substantial recovery, the next hurdles are the former rising trendline support, now resistance around $0.201, and the higher horizontal level at $0.234.

The previous floor around $0.153 offers immediate downside support. Even with momentum readings becoming increasingly stretched, a sustained move below that level would clear the path for a further decline.

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