XRP, XLM Lose Steam as Derivatives Sentiment Dips

Key Moments

Sentiment Cools as Prices Pull Back

Ripple (XRP) and Stellar (XLM) are trading under pressure on Tuesday, with XRP around $1.499 and XLM below $0.220 after a modest correction at the start of the week. The recent pullback comes alongside softening derivatives positioning and waning bullish momentum, prompting a more cautious stance among traders and suggesting that further downside cannot be ruled out for both tokens.

Derivatives Metrics Point to Growing Caution

Derivatives data indicates a more defensive tone in positioning for both XRP and XLM. CoinGlass’ long-to-short ratio stands at 0.85 for Ripple and 0.96 for Stellar on Tuesday. Since readings below 1 signal that short interest outweighs long positions, these ratios highlight a broadly bearish tilt as traders position for potential declines in prices.

For XRP, the funding rate turned positive on Saturday and is at 0.0097% on Tuesday. Positive funding shows that longs are paying shorts, consistent with a mildly constructive outlook even as price momentum has eased.

In contrast, XLM’s funding rate moved into negative territory on Monday and is at -0.0056% on Tuesday. A negative funding rate means shorts are paying longs, aligning with a more bearish stance in Stellar’s perpetual futures market.

On-Chain and Market Data Signal Bearish Bias

Summary indicators from CryptoQuant point to a broadly negative bias for both altcoins. For XRP, spot and futures markets reflect overheating conditions, while the futures segment shows sell-side dominance. Together, these signals underscore a cautious, bearish-leaning sentiment among Ripple traders.

For XLM, spot market conditions are described as healing, but the futures market similarly exhibits sell-side dominance. This combination suggests that, despite some stabilization in spot trading, derivatives flows convey a persistently negative outlook for Stellar.

XRP Technical Landscape: Uptrend Intact but Under Pressure

XRP is changing hands at $1.4996 on Tuesday after mild losses the previous day. Despite the recent dip, the token maintains a constructive medium-term tone, with price trading above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which are clustered roughly between $1.330 and $1.400. This configuration supports the view that the broader uptrend remains in place.

The Relative Strength Index (RSI) sits near 56, a level that keeps XRP in positive territory without signaling overbought conditions. This suggests buyers still retain some control. At the same time, the Moving Average Convergence Divergence (MACD) is slightly negative, pointing to a cooling of upside momentum following the latest rally.

On the upside, the first resistance level is located near the horizontal barrier at $1.671. A further obstacle is seen around $1.900, where previous supply could return if buying interest strengthens again.

On the downside, initial support aligns with the rising 50-day EMA near $1.398, followed by the 200-day EMA at $1.378 and the 100-day EMA around $1.332. Below these, horizontal support at $1.300 and then $1.000 define deeper demand areas if a broader corrective phase develops.

XLM Technical Setup: Trend Supported, Momentum Softens

Stellar’s XLM is trading at $0.214 on Tuesday and retains a bullish near-term bias as it continues to hold above the 50-day, 100-day, and 200-day EMAs. These moving averages are grouped roughly between $0.190 and $0.200, providing a layered support base. An upward-sloping trendline around $0.191 further reinforces the constructive technical structure.

The RSI near 54 points to moderate momentum without signaling extremes. At the same time, the MACD has slipped slightly into negative territory, indicating a softening in momentum but not yet a clear reversal of the prevailing trend.

On the downside, the first horizontal support level appears near $0.202. Below that, the 50-day EMA at $0.199 and a broader support band formed by the 200-day EMA at $0.192, the rising trendline around $0.191, and the 100-day EMA at $0.191 could attract buyers if selling pressure intensifies. Further down, support emerges at $0.177 and $0.142.

On the topside, the primary resistance level is the horizontal barrier near $0.234. A daily close above this threshold would clear the way for additional gains.