Ripple and Stellar Face Bearish Pressure as Derivatives Metrics Weaken
Ripple (XRP) and Stellar (XLM) are under pressure on Tuesday, trading below $1.499 and $0.220 respectively, following a slight correction at the start of the week. Traders are advised to exercise caution as derivatives data and weakening bullish momentum suggest potential further declines for both cryptocurrencies.
Derivatives metrics indicate a cautious outlook. CoinGlass' long-to-short ratios for Ripple and Stellar stand at 0.85 and 0.96 respectively, signaling bearish sentiment. The XRP funding rate turned positive on Saturday, reflecting mild bullishness, while the XLM funding rate flipped negative on Monday, pointing to bearish pressure.
On-chain data from CryptoQuant supports this bearish sentiment. XRP's spot and futures markets show overheating conditions with sell-side dominance, while XLM's futures market also indicates sell-side control despite spot market healing.
Technically, XRP remains above key moving averages, maintaining a medium-term uptrend. Resistance levels are identified at $1.671 and $1.900, with support around $1.398 and $1.378. Meanwhile, XLM holds above its moving averages, with resistance at $0.234 and support near $0.202 and $0.192.