Altcoin market turbulence persists: XRP struggles to break $3, while XLM drops below key moving averages. Liquidations rise as BTC reigns, driving traders to safer assets. How far can these cryptos drop, and what signals to watch for next?
XRP is currently experiencing a significant correction phase. The cryptocurrency has fallen 3.55% in the last 24 hours and 2.77% over the week, now hovering around $2.86. This drop comes after a failed attempt to reclaim the $3 threshold, a major psychological level for bulls.
The first crucial support level sits at the 100-day exponential moving average (EMA), currently positioned at $2.85. This technical level acts as a barrier against an accelerated downtrend. If XRP closes below this threshold on a daily basis, sellers could take control and push the price toward $2.72, which represents last month’s low.
If the bearish movement continues, the 200-day EMA around $2.63 would represent the next major support. Momentum indicators confirm this fragility: The RSI at 44.63 remains well above the oversold zone, suggesting there is room for additional decline before a potential technical rebound. Moreover, XRP being surpassed by BNB in terms of market capitalization constitutes a negative psychological signal for holders.
To reverse the trend, bulls must absolutely regain control above $2.90, then aim for a decisive close above $3.
Stellar (XLM) has not escaped the selling pressure hitting altcoins. With a drop of 4.77% on the day, the token is currently trading at $0.382, completely erasing the October 6 rebound that had briefly propelled it above $0.41.
The technical structure of XLM shows concerning signs of weakness. The price has fallen below the 7-day simple moving average (SMA) at $0.399 and below the 30-day SMA at $0.384, confirming increasing downward pressure. The RSI at 46.88 indicates declining momentum while the MACD histogram, barely positive, suggests that bullish energy is rapidly depleting.
The loss of the pivot zone at $0.392 represents a significant technical turning point. This level served as a short-term sentiment marker, and its downward breach opens the door to further corrections. If the support at $0.38 gives way, the next bearish target sits at $0.36, a zone that held well at the end of September.
For Stellar to reverse course, a recovery above $0.392 accompanied by a close above the 30-day SMA is essential. Meanwhile, caution remains the watchword for traders positioned on this token.
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