Derivatives Positioning Backs XRP and XLM Upside Case

Key Moments

Derivatives Positioning Backs Bullish Bias

Ripple (XRP) and Stellar (XLM) traded above important support levels on Tuesday, keeping an upward bias in place. Derivatives indicators reinforced that outlook, with both assets showing positive funding rates and an increase in long exposure.

Data from CoinGlass showed long-to-short ratios of 1.14 for XRP and 1.15 for XLM on Tuesday, levels that were close to their highest readings in a month. Readings above 1.0 point to a predominance of long positions and reflect expectations for higher prices among derivatives traders.

Funding dynamics were also aligned with that view. The XRP funding rate turned positive on August 28 and was at 0.0084% on Tuesday. XLM’s funding rate moved into positive territory on September 2 and stood at 0.0147% on Tuesday. Positive funding rates indicate that traders holding long positions are paying shorts, typically associated with a bullish stance in the market.

XRP Technical Setup: Price Holds Above Major EMAs

XRP traded at $1.402 on Tuesday, maintaining a constructive technical structure while staying above its 50-day, 100-day and 200-day Exponential Moving Averages. These EMAs were grouped between roughly $1.240 and $1.350, forming a support zone that continued to underpin the broader uptrend despite fading upside momentum.

The Relative Strength Index (RSI) hovered near 59, suggesting positive but moderating strength. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator had slipped slightly into negative territory, pointing more to consolidation than to a clear shift in trend.

On the downside, the first notable support level was around the 200-day EMA at $1.353. Additional demand was anticipated near the horizontal price area around $1.300, with further support at the 50-day EMA at $1.258 and the 100-day EMA at $1.238. A more distant structural floor was identified near $1.000.

On the upside, bulls faced a key resistance zone near $1.900. A daily close above that horizontal barrier would be needed to open the way for fresh highs and to reinforce the broader bullish structure.

XLM Technical View: Recovery Continues Above Clustered EMAs

XLM traded at $0.193 on Tuesday, extending its recovery phase while staying above its main EMAs and shifting the near-term bias to the upside. The 50-day, 100-day and 200-day EMAs, grouped between about $0.180 and $0.190, acted as a rising demand zone under spot price, pointing to dip-buying interest on pullbacks.

The RSI remained in bullish territory around 60, and the MACD histogram was mildly positive with the MACD line above the signal line. This configuration suggested that bullish momentum remained constructive without appearing overstretched.

On the topside, initial resistance was identified at the 61.8% Fibonacci retracement of the latest swing near $0.200. Additional barriers were seen at the 50% retracement around $0.218 and the 38.2% retracement level close to $0.237. A sustained break above these zones could clear the way toward descending trendline resistance and the 23.6% Fibonacci retracement level in the $0.260 area.

On the downside, immediate technical support was located at the 200-day EMA near $0.188, followed by the 100-day EMA at $0.180 and the 50-day EMA around $0.179. A deeper decline would expose the horizontal support floor at $0.177 and the 78.6% Fibonacci retracement near $0.173, areas where buyers would be expected to defend the broader uptrend before more distant support levels at $0.142 and $0.139 became relevant.