Recently, investors were taken by surprise as both Ripple (XRP) and Stellar (XLM) witnessed significant growth in their token values, almost reaching triple-digit percentages.
Currently, XRP maintains its position in the top 10 cryptocurrencies, while the recent price surge for XLM has raised hopes for its return to the top 20 by market capitalization.
Stellar’s Rapid Rise Hits a Roadblock
In the past few days, XLM and XRP experienced substantial growth, nearly doubling in value. Consequently, Stellar’s market capitalization surged, placing it in the 21st position among cryptocurrencies.
The gap between XLM and the 20th spot in market capitalization narrowed to just over a billion. If the upward trend continues, XLM could reenter the top 20 list.
However, on-chain data indicated a different narrative. Trading volume for XLM showed a decline, and its Weighted Sentiment dropped, signaling a rise in bearish sentiment.
These negative metrics swiftly impacted XLM’s price performance. According to CoinMarketCap, XLM’s price fell by approximately 10% in the last 24 hours.
At the latest update, XLM was trading at $0.2255 with a market cap of $6.75 billion, possibly due to heightened selling pressure.
Stellar’s Relative Strength Index (RSI) lingered in the overbought region for some time, prompting investors to sell their holdings for profit-taking.
Price corrections often occur following sell-offs, and the Chaikin Money Flow (CMF) also indicated a decrease, signaling a sell-off trend.
XRP Faces Similar Price Movement
XRP, like XLM, experienced a price correction, but the decline was less severe at 2%, compared to XLM’s 10% drop.
Currently trading above $1, XRP’s value stood at $1.09, maintaining stability amidst the market shifts.
However, the token’s Long/Short Ratio witnessed a significant decline in the 4-hour timeframe, suggesting a higher presence of short positions that could further impact XRP’s price decline.
An analysis of XRP’s daily chart uncovered high selling pressure, mirroring Stellar’s situation.
Additionally, XRP’s CMF displayed a downturn, while its Relative Strength Index (RSI) signaled an impending increase in selling pressure due to an overbought status.