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▲ XRP, Stellar (XLM)/AI-generated image
XRP and Stellar (XLM) are raising recovery expectations after recent corrections. With the inflow of spot ETF funds, improved derivatives indicators, and stable on-chain flows, market sentiment for the two altcoins appears to be moving away from a bearish-only trend.
FXStreet reported on May 21 (local time) that XRP continues its rebound after recent corrections, and XLM rebounded after retesting the key support level of around $0.143. XRP's steady inflow into spot ETFs supported the recovery of investor sentiment, while XLM successfully defended its technical support level, opening up possibilities for further recovery.
According to SoSo Value data, the XRP spot ETF recorded a net inflow of $1.45 million on Wednesday. This marks five consecutive trading days of positive flow since last week. The article evaluated that institutional demand remains strong despite recent price adjustments and analyzed that if this inflow continues, it could contribute to XRP's recovery.
On-chain and derivatives indicators also showed a gradual improvement. CryptoQuant summary data showed that investor sentiment for XRP and XLM shifted from neutral to slightly bullish. The XRP spot market showed signs of cooling down from overheating, while the XLM spot market showed a buying dominance. According to CoinGlass, the long/short ratio for XRP was 1.02 and for XLM was 1.01, both exceeding 1. The funding rate for XRP also turned positive on Monday and rose to 0.0027% by Thursday, while XLM's was -0.0002%, nearing a positive turn.
Improved risk-asset preference sentiment was also presented as a factor raising recovery expectations. U.S. President Donald Trump stated that negotiations with Iran are in their final stages but also warned that military action would resume within days if Iran rejects the conditions. Iranian President Masoud Pezeshkian countered on X (formerly Twitter) that attempts to force surrender through coercion are an illusion. The article explained that these developments raised hopes for a peace agreement between the U.S. and Iran, supporting the recovery of risk-sensitive assets.
Technically, XRP remains below its major exponential moving averages, indicating a lingering bearish bias in the broader trend. The 50-day EMA was presented at $1.411, the 100-day EMA at $1.481, and the 200-day EMA at $1.688. The Relative Strength Index is around 46, and the Moving Average Convergence Divergence (MACD) is below the 0 line, making it difficult to say that buying pressure has strongly revived. Resistance levels were suggested at $1.411, $1.427, $1.481, and $1.689 during an uptrend, while the key variable during a downtrend was whether the $1.300 support line would be breached.
XLM remained below its 50-day, 100-day, and 200-day exponential moving averages, maintaining short-term bearish pressure. The Relative Strength Index was weak at around 37 but not oversold, and the MACD remained below the 0 line. In case of a decline, $0.1439 was presented as immediate support, and if selling intensifies, $0.1362 was mentioned as the next downside target. In case of an uptrend, the 50-day EMA at $0.1604, the Fibonacci 23.6% retracement level at $0.1637, and the 100-day EMA at $0.1706 were identified as the primary resistance zone. In further recovery phases, the Fibonacci 38.2% retracement level at $0.1807, the horizontal resistance at $0.1810, the Fibonacci 50% retracement level at $0.1944, and the 200-day EMA at $0.1994 were presented as key hurdles.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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