Both XRP and XLM encountered renewed selling pressure as momentum indicators softened and derivatives positions declined, reflecting a more cautious stance among market participants. XRP changed hands near USD 1.4996 on Wednesday, while XLM dipped to approximately USD 0.214 following losses at the start of the week.
Despite this recent pullback, both cryptocurrencies continue to trade above their medium-term moving averages, keeping their broader technical structures intact.
Derivatives Positioning Turns Defensiv
Derivatives markets indicate that traders are adopting a more defensive posture toward both assets. On Tuesday, XRP recorded a long-to-short ratio of 0.85, whereas XLM registered 0.96. Ratios falling below one mean that short positions outnumber longs, pointing to growing positioning for potential downward movement.
Funding Rates Show Different Conditions
XRP’s funding rate shifted positive over the weekend, hitting 0.0097% on Tuesday. This positive rate denotes that holders of long positions are paying short-position holders, signaling the persistence of some leveraged bullish exposure.
Conversely, XLM’s funding rate turned negative on Monday, reaching -0.0056% by Tuesday. With shorts paying longs, perpetual futures markets are displaying more pronounced bearish alignment.
On-Chain Indicators Show Selling Pressure
Market metrics likewise highlight a cautious environment. While XRP showed signs of overheating across both spot and futures markets alongside sell-side dominance in futures data, XLM displayed healing spot-market conditions even as sellers continued to lead its futures segment. Together, these signals indicate that derivatives traders remain defensive despite pockets of support in spot markets.
XRP Holds Above Major Support
XRP maintains its position above its 50-day, 100-day, and 200-day exponential moving averages, which are clustered roughly between USD 1.33 and USD 1.40. Its Relative Strength Index (RSI) sits at 56, staying above the neutral 50 line to imply that buyers have not completely surrendered control. On the other hand, a slightly negative MACD indicator points to diminishing upward momentum.
Initial resistance is located at USD 1.671, with a secondary level at USD 1.90. Downside support rests near the 50-day EMA at USD 1.398, the 200-day EMA at USD 1.378, and the 100-day EMA at USD 1.332, while a deeper downturn could drive the token down to USD 1.30.
XLM Momentum Begins to Soften
XLM trades above its key EMAs grouped in the USD 0.19 to USD 0.20 range, supported further by an ascending trendline near USD 0.191. An RSI close to 54 reflects relatively balanced momentum, though a slightly negative MACD suggests buying energy is wearing off.
Immediate support sits near USD 0.202, backed by the 50-day EMA around USD 0.199. A more significant drop could test the USD 0.191–USD 0.192 support zone, followed by USD 0.177. Conversely, USD 0.234 serves as the primary resistance ceiling; achieving a daily close above this mark could reinforce XLM’s bullish framework despite current derivatives caution.
Final Thoughts
XRP and XLM retain technical backing, though derivatives data points to growing trader caution. Defending key support levels can preserve their wider bullish configurations despite waning momentum, whereas a breakdown beneath those thresholds could expose both digital assets to more extensive corrections.
Also Read: Can XRP Change the Way of Remittance Service in the Worldwide Market?
FAQs:
1. Why are XRP and XLM prices facing pressure?
Both tokens are experiencing weaker derivatives positioning and fading bullish momentum. Long-to-short ratios below one also indicate that traders have become increasingly cautious about near-term prices.
2. What does XRP’s 0.85 long-to-short ratio indicate?
A ratio of 0.85 means short positions outweigh long positions in the measured derivatives market. This suggests traders currently have a bearish or defensive bias toward XRP.
3. What are the important support levels for XRP?
XRP has initial support around USD 1.398, followed by approximately USD 1.378 and USD 1.332. A deeper correction could bring the USD 1.30 level into focus.
4. What are the key support and resistance levels for XLM?
XLM has initial support near USD 0.202 and USD 0.199, with stronger support around USD 0.191-USD 0.192. Its key upside resistance currently stands near USD 0.234.
5. Are XRP and XLM still in bullish technical structures?
Both remain above their major 50-day, 100-day, and 200-day EMAs, supporting their broader structures. However, weakening MACD readings and cautious derivatives positioning indicate that bullish momentum is losing strength.
