Ripple (XRP) · Stellar (XLM) Bearish Warning Light! Derivatives indicators also uniformly worsen

▲ XRP, Stellar (XLM)/AI generated image ©

XRP (Ripple) and Stellar Lumens (XLM) are being pushed towards key support levels, increasing the risk of further declines. XRP fell below $1.06, and Stellar Lumens has declined for four consecutive trading days, recording a drop of approximately 7% this week alone.

According to investment media FXStreet on August 6 (local time), XRP and XLM fell below $1.06 and $0.165 respectively on Thursday. The long/short ratios compiled by CoinGlass were 0.75 and 0.68 respectively, close to their lowest levels in over a month. A long/short ratio below 1 means that more traders are betting on a price drop.

Funding rates also reflected bearish sentiment. XRP funding rates fell to 0.0013% on Thursday, approaching a negative turn, while XLM funding rates turned negative on Wednesday and recorded -0.026% on Thursday. A negative funding rate means that short position holders are paying costs to long position holders. According to SoSoValue, $3.58 million was net outflowed from XRP spot ETFs on Wednesday. If fund outflows expand throughout this week, the magnitude of XRP's decline could also increase.

XRP traded at $1.04 on Thursday, falling below all 50-day, 100-day, and 200-day exponential moving averages (EMAs) of $1.11, $1.19, and $1.38. The Relative Strength Index (RSI) remained around 39, and the Moving Average Convergence Divergence (MACD) also remained slightly negative, suggesting the possibility of selling pressure during a rebound. The upper resistance levels are $1.11 and $1.19, followed by the horizontal resistance level of $1.30, and the 200-day line at $1.38. At the bottom, $1.00 is a key support level, and if this price breaks, it could open new lows and deepen the correction.

XLM traded at $0.162 on Thursday, remaining below the 50-day, 100-day, and 200-day exponential moving averages formed between $0.181 and $0.193. The price also fell below the 78.6% Fibonacci retracement level of $0.173 and the horizontal resistance level of $0.177. The Relative Strength Index dropped to 32, close to the oversold zone, and the Moving Average Convergence Divergence also remained negative below the 0 line. For a rebound, it needs to break above $0.173 and $0.177, then overcome $0.181 and $0.183. For the bearish structure to ease, sustained recovery above the 200-day line at $0.193 and the 61.8% Fibonacci retracement level at $0.200 is needed. Conversely, if the decline continues, $0.142 and the cycle low of $0.139 are expected to act as support levels in turn.

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