Ripple (XRP)·Stellar (XLM), Downward Pressure Weakens…Prices to Overcome for a Rebound

▲ XRP, Stellar (XLM)/AI Generated Image ©

While XRP (Ripple) and Stellar Lumens (XLM) continue their bearish trend below key moving averages, improved derivatives indicators and momentum suggest that selling pressure is gradually weakening.

According to investment specialized media FXStreet on August 4 (local time), XRP traded at $1.076, above the key support level of $1. XLM remained at $0.170 after failing to break the $0.173 resistance. Both assets still show a short-term bearish trend, but some derivatives indicators pointed to a possibility of a gradual recovery.

According to Coinglass, the funding rates for XRP and XLM turned positive on July 28 and 31, respectively, recording 0.0070% and 0.0017% on the day. A positive funding rate means that long position holders pay costs to short position holders, indicating that bullish expectations are prevailing in the market. XRP's long/short ratio also showed a bullish bias at 1.04, but XLM's dropped to 0.94, indicating a relatively larger number of investors betting on further downside.

Institutional capital flows supported XRP. According to SoSoValue, XRP spot ETFs saw a net inflow of $1.15 million on Monday, marking four consecutive trading days of inflows since last week. The media analyzed that if the net inflow volume expands this week, XRP's recovery trend could continue.

However, XRP is currently trading below its 50-day exponential moving average of $1.119, 100-day moving average of $1.200, and 200-day moving average of $1.397. The Relative Strength Index (RSI) is around 45, and the Moving Average Convergence Divergence (MACD) is below the 0 line, indicating that selling pressure is still stronger than buying pressure. In case of a decline, $1 is a key support level, and for a rebound, it needs to break through $1.119, $1.200, and $1.300 in succession. Subsequent resistance levels are $1.397 and $1.900.

XLM is also trading below its main moving averages clustered between $0.183 and $0.195. The Relative Strength Index is around 39, and the Moving Average Convergence Divergence is also negative, indicating remaining bearish pressure. Short-term resistance levels are the 78.6% Fibonacci retracement levels at $0.173 and $0.177; if these are broken, the next targets become $0.183-$0.184 and $0.195-$0.200. Conversely, if $0.170 cannot be maintained, there is a possibility of a decline to $0.142 and the cycle low of $0.139.

*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.*