- XRP and XLM face growing bearish pressure as social interest and derivatives metrics fall.
- Technicals suggest a deeper correction may follow.
Ripple (XRP) and Stellar (XLM) are showing signs of renewed weakness this week. Both altcoins have struggled to hold recent gains, with XRP falling below $1.32 and XLM slipping under $0.17. Several key metrics point to the potential for a deeper correction in the near term.
Fading Investor Interest Signals Bearish Outlook
On-chain data reveals that retail interest in XRP and XLM is declining. Santiment’s Social Dominance metric, which tracks mentions of these coins in cryptocurrency media, shows a sharp drop in engagement.
This trend indicates that traders are talking less about XRP and XLM, reflecting waning sentiment and reduced participation in the market. The declining social activity aligns with the downward price movement seen since late March.
Derivatives Metrics Show Increased Bearish Pressure
The derivatives market further supports a cautious outlook. XRP’s futures Open Interest has dropped to $2.26 billion, while XLM’s Open Interest sits at $100.45 million, both showing consistent declines over recent months.
Additionally, funding rates for both altcoins have turned negative. XRP’s funding rate stands at -0.0005%, and XLM’s at -0.0097%. Negative funding rates suggest that short positions are paying long positions, indicating strong bearish sentiment in the derivatives market.
Technical Indicators Point to Continued Downside
Technical analysis reinforces the bearish picture for XRP and XLM. XRP remains trapped in a descending parallel channel, trading below its 50-, 100-, and 200-day exponential moving averages (EMAs). The Relative Strength Index (RSI) hovers around 40, reflecting weak buying pressure, while the MACD remains below zero, signaling only mild relief in the downtrend. Immediate support for XRP is near $1.30, with the lower channel boundary around $0.97.
XLM shows a similar pattern, trading below the 50-day EMA at $0.17 and far under the 100- and 200-day EMAs near $0.19 and $0.22. Its RSI is just above 40, and the MACD has rolled below its signal line, pointing to continued downside risk. Key support is at $0.15, with a break below that level opening the path toward $0.14.
What Traders Should Watch
Traders should monitor both altcoins for decisive breaks in support or resistance levels. For XRP, reclaiming $1.42 could ease near-term pressure, while a fall below $1.30 would signal deeper downside risk. For XLM, a close above $0.17 may allow a corrective push toward $0.20, but sustained trading below $0.15 could extend losses further.
With social dominance declining, derivatives signaling bearish sentiment, and technical indicators pointing downward, XRP and XLM appear vulnerable to a deeper correction unless buying interest returns strongly.
ALSO READ: XRP Price Falls Below $1.31 Support as Analysts Warn of 33% Drop
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