The cryptocurrency market is under pressure this week, shifting decisively into risk-off mode. Both XRP and XLM are feeling the squeeze after recent breakout attempts faded. Heavy selling, rising Bitcoin dominance, and growing liquidation volumes have pulled traders toward safety, leaving most altcoins vulnerable.
In this analysis, I’ll walk through what triggered XRP’s price drop below $2.90, why Stellar’s XLM price is struggling to hold $0.38. And what levels could decide whether the pullback deepens or stabilizes?
XRP Price Analysis
XRP’s bullish streak has cooled sharply. The token is down 3.55% on the day and 2.77% over the week. It is trading near $2.86 after a clean breakdown from a bearish pattern that often signals trend exhaustion.
The 100-day EMA at $2.85 is now the immediate line of defense. A daily close below this level could open the door for XRP price to slide toward $2.72, the July swing low, or even the 200-day EMA near $2.63 if sellers keep control.
Momentum indicators suggest the correction might not be over. The RSI at 44.63 remains well above oversold territory, hinting that there’s room for more downside before dip-buyers return. Compounding the weakness is also a psychological hit: BNB recently overtook XRP as the 3rd-largest cryptocurrency by market cap.
That being said, the bulls need a decisive recovery above $2.90, and ideally $3.00, to shift sentiment back in their favor. Holding the $2.85 support on a daily close is absolutely crucial to avoid deeper losses.
XLM Price Analysis
Stellar’s XLM price has followed a similar pattern, sliding 4.77% on the day while flat for the week at $0.382. The coin has completely erased its October 6 rally, which briefly lifted it above $0.41 before sellers stepped in.
Technically, XLM looks weak. The price has fallen below both the 7-day SMA at $0.399 and the 30-day SMA at $0.384. The RSI at 46.88 confirms waning momentum as buyers retreat. The MACD histogram has turned barely positive, suggesting any remaining bullish energy is fading fast.
Losing the $0.392 pivot area, a key short-term sentiment marker, has opened the door to more downside. If XLM price fails to defend $0.38, the next likely target sits at $0.36, a zone that previously acted as support in late September.
For Stellar to regain traction, it needs to reclaim $0.392 and close above the 30-day SMA. Until then, traders should stay cautious.
FAQs
The 100-day EMA at $2.85 is the nearest key support for XRP.
XLM price slipped below the $0.392 pivot and key SMAs amid rising Bitcoin dominance and profit-taking.
XRP must hold $2.85 and reclaim $2.90, XLM needs to defend $0.38 and retake $0.392 to hint at recovery.
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