Cryptocurrency markets are seeing renewed downward pressure on major altcoins this week, with both XRP and XLM registering notable weekly losses. XRP is changing hands near 1.392 dollars on Thursday following a slide of over 2 percent so far this week. Simultaneously, Stellar, or XLM, has retreated by more than 3 percent, trading at 0.1802 dollars. Market participants are closely monitoring the technical indicators and on-chain metrics for both assets as they hover near critical support thresholds that could dictate their next directional moves.
Derivatives and On-Chain Insights from CryptoQuant
Summary data provided by CryptoQuant highlights cautious signals across the board for both altcoins. Ripple’s futures markets exhibit overheated conditions alongside sell-side dominance, while retail trader engagement remains relatively subdued. Furthermore, the spot market also reflects heated conditions while other core metrics remain neutral, underscoring a prevailing bearish and cautious sentiment bias among Ripple market participants.
In contrast, Stellar’s spot and futures markets display large-scale whale order activity, though they similarly suffer from sell-side dominance, pointing to a negative near-term outlook among Stellar traders. However, the XLM ratio stood at 1.13 on Thursday, reaching near its highest level in a month. A ratio exceeding one typically signals bullish sentiment, as traders place bets on rising asset prices. Additionally, the XLM funding rate gravitates toward negative territory at 0.003 percent. Should this rate flip into negative territory, it would indicate a growing bearish conviction among XLM traders.
Technical Analysis and Price Structure for XRP
Despite the ongoing weekly correction, XRP continues to hold its ground above the 50-day, 100-day, and 200-day Exponential Moving Averages, which are tightly clustered between roughly 1.244 dollars and 1.354 dollars. These dynamic floors continue to reinforce a constructive near-term bias as long as they remain intact. The Relative Strength Index hovers in the mid-50s, pointing to moderated bullish momentum, while the Moving Average Convergence Divergence line sits below the zero line, suggesting that upside momentum is losing traction even though the underlying trend structure keeps prices supported.
On the downside, initial support rests at the 200-day EMA near 1.354 dollars, with additional cushion found at the horizontal level around 1.300 dollars and the 50-day and 100-day EMAs positioned just underneath, ahead of a more distant floor near 1.000 dollars. On the topside, the next notable resistance barrier sits at the prior horizontal cap around 1.900 dollars, and a confirmed daily close above that ceiling will be necessary to ignite a stronger bullish continuation despite the prevailing slowdown in market momentum.
XLM Price Action and Key Technical Levels
Stellar trades at 0.1802 dollars on Thursday following a correction exceeding 3 percent for the week. XLM is hovering within a neutral range, sitting just above the 50-day EMA at 0.1796 dollars while remaining capped underneath the 100-day EMA at 0.1803 dollars and the broader 200-day EMA resistance near 0.1886 dollars. This tight clustering of moving averages indicates that prices are consolidating in the wake of the recent pullback. The RSI remains near a neutral 50, and the MACD line has dipped fractionally below the signal line, hinting at waning bullish momentum without triggering a definitive downside breakdown.
On the downside, immediate support is located at the 50-day EMA near 0.1796 dollars, backed by a more defined horizontal floor at 0.1774 dollars. A daily close beneath this support zone would expose the asset to broader support near 0.1420 dollars. On the upside, market bulls must first reclaim the 100-day EMA at 0.1803 dollars, with the 200-day EMA at 0.1886 dollars serving as the subsequent major barrier. Only a sustained move past this higher resistance band would reopen the pathway toward a more constructive medium-term recovery.
Broader Crypto Market and Macroeconomic Headwinds
In the wider macroeconomic environment, Bitcoin continues to trade below 78,000 dollars, maintaining a corrective near-term tone amid hawkish macroeconomic pressures. The US bond market has largely shrugged off the US Treasury's expansion of buyback operations to 6 billion dollars in long-term debt, as bond yields continue to climb, signaling an insufficient measure in light of the ongoing conflict involving Iran.
Despite these headwinds, Bitcoin has persisted in recovering from its mid-year weakness, outperforming major traditional asset classes over the past month while encountering strong resistance within the 83,000 dollars to 86,000 dollars range. According to a Glassnode report published Wednesday, BTC registered a 23 percent gain over the past 21 trading sessions, whereas the S&P 500 and Nasdaq 100 remained broadly flat and the Euro Stoxx 50 recorded a decline.
