XRP and XLM Prices Falter Amid Bearish Sentiment

Ripple's XRP and Stellar's XLM are under pressure as their prices fall by over 2% and 3%, respectively, this week.

The two altcoins are nearing critical support zones that could determine their next directional move. According to CryptoQuant's summary data, both XRP and XLM show bearish signs, with XRP's futures markets indicating sell-side dominance and a slight overheating condition.

In addition, mixed derivatives metrics suggest limited upside potential for both altcoins. The long-to-short ratios for Ripple read 0.83 on Tuesday, nearing its lowest level in a month, while Stellar's ratio read 1.13 on Thursday, nearing its highest level in a month.

The XRP funding rate flipped negative on Wednesday and remains so, indicating shorts are paying longs and reflecting bearish sentiment for XRP. If the XLM funding rate turns negative, it could signal growing bearish sentiment among XLM traders.