Ripple and Stellar outlook: XRP and XLM recovery gains ground as bearish momentum fades

• XRP holds above $1.30. Thursday’s gains follow a close above the upper trendline of a falling channel pattern.
• Above $0.168, XLM advances towards its next key resistance at $0.173.
• Further recovery remains possible for both altcoins, supported by better derivatives metrics and a modest improvement in momentum.

XRP remains above $1.30. Ripple (XRP) and Stellar (XLM) are building on their recovery on Thursday as selling pressure on both altcoins starts to subside. XRP has broken above the upper trendline of a falling channel pattern. XLM, meanwhile, holds above $0.168 as it moves towards resistance at $0.173. Better derivatives metrics and firmer momentum indicators suggest scope for additional recovery.

Derivatives indicators show modest improvement

Conditions in Ripple and Stellar derivatives markets have improved slightly. As the CoinGlass chart below illustrates, funding rates for both altcoins turned positive on 30 October before jumping 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.

The picture is less supportive for XRP’s long-to-short ratio. CoinGlass data puts the reading at 0.85 on Thursday, still in negative territory. Below one, the ratio signals bearish sentiment as traders position for falling asset prices, limiting XRP’s recovery potential.

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

$1.308: XRP technical outlook remains mildly constructive

At $1.308 on Thursday, XRP retains a mildly constructive bias following its close above the falling channel’s upper trendline. 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. Despite a modest improvement in momentum, these levels suggest the pair remains capped. 

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

Immediate downside support lies near $1.265 at the previously breached upper trendline. A daily close beneath it would bring deeper support at $1.160 and $1.000 into view.

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

$0.169: XLM technical outlook shows easing selling pressure

At $0.169 on Thursday, XLM remains under pressure beneath its key moving averages. The 50-day, 100-day and 200-day EMAs stand at $0.182, $0.184 and $0.191, respectively. Together, they restrict upside potential and maintain a bearish near-term bias.

Demand remains subdued, with the Relative Strength Index (RSI) around 42. Meanwhile, the Moving Average Convergence Divergence (MACD) has edged into positive territory. This points to weakening bearish momentum, but not yet a reversal while the price remains below these key averages.

The horizontal level near $0.173 is the first upside resistance. Beyond it, successive hurdles lie at the 50-day EMA at $0.182, the 100-day EMA at $0.184 and 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 sits near the horizontal level of $0.153. Despite the improving MACD picture, a break below this level would likely leave the pair exposed to a deeper correction.

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