XRP, XLM Face Technical Headwinds as Momentum Fades

Key Moments

Derivatives Picture Signals Caution in XRP and XLM

Ripple (XRP) and Stellar (XLM) remain under downside pressure on Thursday, with both assets struggling to extend their recent recovery. XRP trades below $1.36, while XLM is changing hands under $0.183, as derivatives and momentum indicators point to a cautious stance among market participants.

Derivatives data reflects softening conditions across both markets. According to CoinGlass, the long-to-short ratio stands at 0.67 for XRP and 0.93 for XLM on Thursday, levels that are close to the lowest readings in more than a month. A ratio below 1 indicates that traders are positioning for further declines, signaling a broadly bearish derivatives backdrop.

At the same time, funding rates for both tokens have turned positive. XRP’s funding rate flipped positive on Monday, and XLM’s followed on Wednesday. On Thursday, they are recorded at 0.0084% for XRP and 0.0072% for XLM, meaning long positions are paying shorts, which typically reflects a mildly constructive, though not dominant, bullish tone.

On-Chain and Market Structure: Bearish Bias Persists

On-chain and market structure indicators maintain a cautious outlook for both altcoins. CryptoQuant’s summary data points to a bearish bias in XRP, with spot and futures markets showing large whale activity alongside “heating” conditions. The futures segment also shows sell-side dominance, reinforcing a defensive stance among Ripple traders.

For XLM, spot market data indicates healing conditions, yet the futures market still reflects sell-side dominance. This combination points to a negative overall view among Stellar traders despite some stabilization in spot markets.

XRP Technical View: Price Stuck Below Key Exponential Averages

XRP is trading at $1.352 on Thursday and remains below key medium- and long-term Exponential Moving Averages. The 200-day EMA at $1.374 and the 50-day EMA at $1.375 form a tight resistance zone just overhead, keeping the immediate tone bearish even as XRP holds above the 100-day EMA at $1.337.

The Relative Strength Index sits at 45 and is tilting slightly lower, while the Moving Average Convergence Divergence indicator is marginally negative. Together, these momentum gauges suggest that attempts to recover could struggle unless buyers can push price decisively back above the clustered EMAs.

On the upside, immediate resistance is located at the 200-day EMA at $1.374, followed very closely by the 50-day EMA at $1.375. Together they establish the first significant supply zone. A sustained move above this area would open the door toward the horizontal resistance at $1.540 and potentially the next higher barrier near $1.900.

On the downside, the first layer of support is found around the current region, supported by the 100-day EMA at $1.337. Below that, a horizontal floor lies near $1.300. A daily close under $1.300 would strengthen the broader bearish setup and raise the risk of deeper losses.

XLM Technical View: Momentum Indicators Lose Strength

XLM trades at $0.182 on Thursday and remains pressured as it stays under a tight band of EMAs. The 100-day EMA is around $0.190, the 200-day EMA is near $0.191, and the 50-day EMA is close to $0.192. This overhead cluster continues to cap the broader tone after the token was rejected from higher levels recently.

The RSI is near 41, pointing to muted buying interest, while the MACD remains in negative territory. These readings indicate that bearish momentum persists even though the pace of downside pressure has moderated.

On the upside, initial resistance is defined by the EMA band between roughly $0.190 and $0.192. Above that, the previously broken rising trendline now acts as resistance around $0.195, before a stronger horizontal barrier emerges near $0.234.

On the downside, immediate support is seen at $0.173, while a more substantial base is located near $0.153, an area where buyers previously intervened to halt declines.