XRP, XLM Recovery Hinges on Key Resistance Levels

Ripple (XRP) and Stellar (XLM) are showing signs of recovery after finding support at key technical levels, but mixed derivatives data suggests traders remain cautious. CoinGlass' long-to-short ratios show a bullish sentiment for XRP, with a ratio of 1.06 on Thursday, while XLM's ratio is bearish, reading 0.97.

The XRP funding rate flipped negative on Wednesday, indicating shorts are paying longs and reflecting a bearish outlook. On the other hand, the XLM funding rate turned positive on Wednesday, with a rate of 0.0093% on Thursday, suggesting longs are paying shorts and a bullish sentiment.

CryptoQuant's summary data shows slight bearish tilt for both altcoins. XRP's spot and futures markets show overheating conditions, while the futures market indicates sell-side dominance and retail traders' activity. For XLM, spot shows large whale orders, but the futures market also suggests sell-side dominance.

XRP's technical outlook is neutral, with price trading at $1.300 on Thursday and sitting between clustered moving averages and higher trend resistance. The 50-day and 100-day EMAs are marginally above XRP's current price, suggesting underlying demand in the $1.250-$1.280 area.

XLM's technical outlook is also neutral-to-mildly bullish, with price trading at $0.184 on Thursday and holding above the 50-day and 100-day EMAs clustered near $0.180. However, the pair remains capped by the 200-day EMA at roughly $0.188.