Ripple (XRP) and Stellar (XLM) are experiencing some downward pressure this week. As of Thursday, XRP is nearing the significant $1.00 support level, while XLM is trading below a crucial resistance point. The mixed signals from derivatives and on-chain data suggest a cautious mood among traders, which leaves both cryptocurrencies susceptible to further declines, but also hints at a possible rebound.
Traders’ Mixed Sentiment
Data from derivatives shows a divided sentiment. The XRP long-short ratio stands at 1.03 on Thursday, indicating a slight bullish outlook as traders seem to expect price increases. In contrast, XLM has a long-short ratio of 0.92, which is close to its lowest point in over a month, reflecting a bearish stance.
Nevertheless, both altcoins are showing a positive shift in funding rates, with XRP at 0.0064% and XLM at 0.0092% on Thursday. This suggests that long traders are bearing costs, which points to a somewhat optimistic bias.
Cautious Optimism
CryptoQuant’s data points to a tempered sense of optimism. While the XRP futures market is witnessing significant whale activity, other indicators remain neutral, hinting at a potential recovery. In contrast, XLM appears to have a seller’s edge, with substantial whale orders indicating a more careful sentiment among traders.
XRP’s Technical Outlook: Approaching $1 Support
As of Thursday, XRP is priced at $1.004, sitting below the 50-day exponential moving average (EMA) of $1.090, the 100-day EMA at $1.171, and the 200-day EMA of $1.362, suggesting a short-term bearish outlook. The cluster of above EMAs indicates limited upward movement, and with the Relative Strength Index (RSI) around 35, there’s still pressure to the downside. The moving average convergence divergence (MACD) remains negative, emphasizing the weak trend, even though it’s just above the crucial $1.000 level.
On the downside, immediate support is found at the $1.000 mark, which might encourage buyers to step in and halt the decline.
For resistance, the first level is aligned with the 50-day EMA at $1.090, followed by the 100-day EMA at $1.171, and then the prior resistance level at $1.300. Further ahead, the 200-day EMA near $1.362 is another significant benchmark, with higher resistance likely at $1.900.
XLM’s Technical Outlook: Major EMAs as Resistance
XLM is trading at $0.159 as of Thursday, also below key EMAs, reinforcing a near-term bearish stance. The 50-day EMA is at $0.176, the 100-day EMA is at $0.180, and the 200-day EMA is at $0.190, all acting as layered resistance, suggesting that any rally will likely be limited before a more substantial recovery occurs.
Momentum appears weak, with the RSI around 33, bordering on oversold conditions, and the MACD also in negative territory, maintaining the downward pressure.
If we look upward, the first resistance aligns with the 50-day EMA around $0.176, followed by a horizontal barrier at $0.177, which forms a nearby supply area that bulls need to overcome to mitigate selling pressure. Above this, the 100-day EMA at $0.180 could pave the way for the more strategically important 200-day EMA at $0.190.
On the downside, the next significant support is found at a prior low near $0.142, where buyers may try to halt any further downside movement if the current bearish trend continues.
