Bullish Sentiment Gains Momentum for XRP and XLM Amid Rebound Hopes

Ripple and Stellar's performance has been divergent in recent times, raising questions about whether their current weakness could be followed by a rebound. Derivatives metrics suggest that market positioning is shifting towards a potential short-term recovery for both XRP and XLM.

According to CoinGlass' long-to-short ratios, which have been tracking traders' sentiment since the beginning of this month, both tokens show mild bullish tilt among traders. On Thursday, the ratio for XRP was 1.15, while it was 1.09 for XLM. A ratio above one indicates bullish sentiment as traders bet that asset prices will rise.

The funding rates for both XRP and XLM also flipped positive, indicating a bullish bias among traders. The XRP funding rate read 0.0097% on Thursday, while the XLM funding rate was 0.0100%. This suggests that longs are paying shorts and reflecting a bullish outlook.

XRP's technical outlook appears more constructive than Stellar's. Despite trading near recent highs, XRP price is still holding above key EMAs, with the 200-day EMA at $1.350 and the 50-day and 100-day EMAs at $1.222 and $1.218, respectively. The Relative Strength Index (RSI) at 59 shows momentum cooling from prior overbought extremes but still leans mildly positive.