XRP and XLM decline as bearish signal strengthens: Ripple and Stellar outlook

• $1.25 is XRP’s approximate trading level on Tuesday. Bearish momentum keeps the token under pressure.
• Below $0.162, XLM continues to fall, pointing to a deeper correction.
• Recovery in both altcoins faces constraints from mixed derivatives readings, bearish on-chain data and deteriorating technical signals.

$1.25 is XRP’s approximate trading level on Tuesday. Sellers retain control of Ripple (XRP), while Stellar (XLM) falls further below $0.162, increasing the risk of a deeper correction. Bearish momentum continues to limit recovery attempts in both tokens. Mixed derivatives readings, negative on-chain metrics and deteriorating technical indicators also point to further downside risk for the two altcoins.

Derivatives Signals Remain Mixed, Limiting Recovery

On Tuesday, CoinGlass’ long-to-short ratios stand at 0.90 for XRP and 0.98 for XLM, reflecting weaker derivatives conditions for Ripple and Stellar. Readings below one signal bearish sentiment, with traders positioning for lower asset prices.

Funding rates offer a contrasting signal. After turning positive on 30 October, they stand at 0.0065% for XRP and 0.0085% for XLM on Tuesday. Positive readings mean long-position holders are paying those holding short positions, pointing to a mildly bullish outlook.

On-Chain Readings Point to Bearish Sentiment

A bearish outlook for both altcoins emerges from CryptoQuant’s summary data. Large whale orders and seller dominance characterise XRP’s spot and futures markets. Heating conditions in the spot market further highlight a cautious, bearish bias among Ripple traders.

Seller dominance also characterises XLM’s spot and futures markets, signalling a negative outlook among Stellar traders.

$1.251: XRP Consolidates Below Key EMAs

At $1.251 on Tuesday, XRP retains a bearish near-term bias. The token sits below its 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), at $1.336, $1.324 and $1.365, respectively. Further reinforcing downside pressure, the price remains beneath upper trendline resistance at $1.285 and the horizontal barrier at $1.3000.

A Relative Strength Index (RSI) reading near 37 points to muted momentum, rather than oversold conditions. Sellers also retain control of the short-term tone, according to the slightly negative Moving Average Convergence Divergence (MACD).

Any advance would first face trendline resistance around $1.285, then the horizontal ceiling at $1.300. Beyond these levels, the EMAs at $1.324 and $1.336 combine with the 200-day EMA at $1.365 to create a dense supply zone. Further resistance lies at $1.540 and $1.900.

The closest downside support is $1.160. A deeper structural floor lies at $1.000, where buyers would be expected to intervene against further declines.

$0.161: XLM Remains Under Bearish Control

At $0.161 on Tuesday, XLM retains a bearish near-term bias below its 50-day, 100-day and 200-day EMAs, grouped between roughly $0.183 and $0.189. The token continues to retreat after recently breaking beneath former support at $0.173. An RSI near 34 signals weak, but not extreme, downside momentum. The marginally negative MACD also suggests limited upside while the EMAs remain above the price.

An initial upside barrier lies around $0.173. Above it, the tightly grouped EMAs at $0.183, $0.185 and $0.189 provide structural supply, with a stronger resistance level near $0.234.

Recent trading around $0.161 defines immediate support. More significant underlying demand sits at $0.153, aligned with the previous swing low and trendline anchor. A sustained breach of $0.153 would likely pave the way for a deeper bearish extension.

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