Ripple and Stellar outlook: Why are XRP and XLM still under pressure as bearish momentum continues?

• Near-term sentiment towards XRP stays bearish, with Tuesday’s price below $1.30 and key EMAs.
• Pressure persists on XLM as it trades below $0.169 on Tuesday, despite a modest recovery a day earlier.
• Gains in both altcoins remain constrained by fading momentum, mixed derivatives signals and caution in on-chain data.

Selling pressure continues to weigh on Ripple (XRP) and Stellar (XLM), with Tuesday’s prices below $1.30 and $0.169, respectively, despite the previous day’s modest rebound. Bearish price action persists as both tokens trade beneath their key Exponential Moving Averages (EMAs). A sustained recovery also faces constraints from mixed derivatives readings and cautious on-chain signals.

Can a rebound endure amid mixed derivatives signals?

Conditions in Ripple and Stellar derivatives are deteriorating, according to the data. On Tuesday, CoinGlass’ long-to-short ratios stand at 0.77 for XRP and 0.91 for XLM, approaching their lowest levels in over a month. Readings below one reflect bearish sentiment, with traders positioning for a decline in asset prices.

Funding rates, however, offer a contrasting signal. XRP’s rate turned positive on 16 October, while XLM’s did so on Monday. Their respective Tuesday readings of 0.0100% and 0.0045% show that long positions are paying short positions, pointing to a mildly bullish outlook.

The contrast between bearish positioning and positive funding rates points to continued caution across the broader derivatives market, limiting the scope for a sustained XRP and XLM recovery.

What makes on-chain signals cautious?

Both altcoins face a bearish outlook in CryptoQuant’s summary data. In XRP’s spot and futures markets, large whale orders coincide with heating conditions and sell-side dominance. Together, these readings point to a cautious, bearish bias among Ripple traders.

Sell-side dominance is also evident in XLM’s spot and futures markets, signalling a negative view among Stellar traders.

Is institutional demand losing strength?

Institutional appetite for XRP opened the week on a weak footing. According to SoSoValue, spot Exchange Traded Funds (ETFs) registered an outflow of $3.61 million on Monday. Should these outflows persist and gather pace through the week, XRP could see its correction deepen.

XRP technical outlook: Can price overcome key EMA resistance?

Trading at $1.300 on Tuesday, XRP retains a bearish near-term bias beneath its key Exponential Moving Averages (EMAs). A series of dynamic resistance levels lies overhead: the 100-day EMA at $1.333, the 50-day EMA at $1.360 and the 200-day EMA at $1.369. As long as the pair stays below this cluster, rebounds are likely to face limits.

Weak momentum is reflected in a Relative Strength Index (RSI) close to 40 and a Moving Average Convergence Divergence (MACD) reading that remains negative. Although the MACD has recently improved, this suggests easing downward pressure rather than a definite bullish turn.

Any move higher would first encounter the 100-day EMA at $1.333. The next resistance levels are the 50-day EMA at $1.360 and the 200-day EMA at $1.369, followed by horizontal barriers at $1.540 and $1.900.

The horizontal floor at $1.300 provides nearby downside support, just below the prevailing price. Buyers may seek to protect the recent trading range at this level. A decisive breach would likely leave XRP vulnerable to further losses and keep it within the broader corrective phase.

XLM technical outlook: Can buyers challenge bearish momentum?

With Tuesday’s price at $0.168, XLM continues its retreat beneath all key EMAs, leaving the near-term bias bearish. The 50-day, 100-day and 200-day EMAs form a tight overhead cluster between roughly $0.188 and $0.190. Rallies are likely to face difficulty while the token trades below this resistance zone. 

At nearly 34, the daily RSI is edging towards oversold territory. Meanwhile, a mildly improving but still negative MACD suggests that downward momentum is slowing, without confirming a bottom.

The first hurdle on the upside is the horizontal resistance near $0.173. Beyond it, the EMA cluster around $0.188–$0.190 strengthens the broader bearish structure.

Should buyers pursue a more substantial recovery, further barriers lie at around $0.201, where the former rising trendline support has become resistance, and at the higher horizontal level of $0.234.

The previous floor around $0.153 offers immediate downside support. A sustained move beneath it would clear the way for a fresh leg lower, even as momentum readings become increasingly stretched.

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