Ripple and Stellar outlook: Strengthening bearish signal sees XRP and XLM fall

• At around $1.25 on Tuesday, XRP continues to face pressure as bearish momentum prevails.
• Below $0.162, XLM continues to lose ground, pointing to a more pronounced correction.
• Recovery prospects for both altcoins are constrained by mixed derivatives signals, bearish on-chain readings and deteriorating technical indicators.

Around $1.25 for Ripple (XRP) and below $0.162 for Stellar (XLM), Tuesday’s prices reflect persistent selling pressure across both altcoins. Sellers retain the upper hand in XRP, while XLM’s extended decline increases the risk of a deeper correction. Bearish momentum continues to limit recovery attempts, with mixed derivatives readings, downbeat on-chain metrics and deteriorating technical indicators pointing to further downside risk for both assets.

Recovery remains constrained by mixed derivatives readings

At 0.90 for XRP and 0.98 for XLM on Tuesday, CoinGlass’ long-to-short ratios point to deteriorating derivatives conditions for Ripple and Stellar. Readings below one signal bearish sentiment, reflecting traders’ bets on falling asset prices.

Funding rates offer a contrasting signal. Having turned positive on 30 October, they stand at 0.0065% for XRP and 0.0085% for XLM on Tuesday. Positive readings mean holders of long positions are paying those holding short positions, suggesting a mildly bullish outlook.

On-chain readings point to bearish conditions

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

Selling activity also dominates XLM’s spot and futures markets, pointing to a downbeat outlook among Stellar traders.

XRP technical outlook: Price consolidates beneath key EMAs

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. Further reinforcing the downward pressure, the price is also below upper trendline resistance at $1.285 and the horizontal barrier at $1.3000.

A Relative Strength Index (RSI) reading near 37 points to weak momentum, rather than oversold conditions. The Moving Average Convergence Divergence (MACD), meanwhile, is still slightly negative, indicating that sellers retain control over the short-term direction.

Any advance would first encounter trendline resistance around $1.285, followed by the horizontal ceiling at $1.300. Beyond those levels, the EMAs at $1.324 and $1.336, together with the 200-day EMA at $1.365, create a concentrated supply zone. Further resistance lies at $1.540 and $1.900.

Should the price decline, the closest support is $1.160. A more substantial structural floor lies at $1.000, where buyers would be expected to emerge to resist further losses.

XLM technical outlook: Sellers retain the upper hand

Trading at $0.161 on Tuesday, XLM remains bearish in the near term beneath the 50-day, 100-day and 200-day EMAs, grouped at roughly $0.183 to $0.189. The price continues to retreat following its recent break below former support at $0.173. An RSI reading near 34 signals weak, though not extreme, downside momentum. With the MACD also marginally negative, recovery prospects remain constrained while the EMAs sit above the price.

A recovery would initially face the horizontal barrier around $0.173, before reaching the closely grouped EMAs at $0.183, $0.185 and $0.189, which form a structural supply zone. A firmer ceiling lies near $0.234.

The recent trading area around $0.161 provides immediate support. Below that, the previous swing low and trendline anchor at $0.153 mark a more significant area of demand. A sustained breach of $0.153 would be likely to pave the way for a deeper decline.

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