- The XLM cryptocurrency is down 10% in the last 24 hours.
- Selling pressure has increased for both XLM and XRP.
Both tokens have recently surprised investors with nearly triple-digit growth. Ripple (XRP) and Stellar (XLM).
While XRP remained comfortably in the top 10 at the time of going to press, XLM’s recent price increase has raised hopes that it could re-enter the top 20 list of cryptocurrencies by market capitalization.
XLM’s rapid growth has come to a halt.
Both XLM and XRP have recorded massive growth of almost 100% over the past few days. Thanks to this, Stellar’s market capitalization increased significantly, ranking 21st in the list of cryptocurrencies by market capitalization.
As a result, the market capitalization gap between 20th place and XLM narrowed to about 1 billion. If the price continues to rise, it seems reasonable for XLM to re-enter the top 20.
However, on-chain data suggested different results. For example, XLM’s trading volume started to decline. Weighted Sentiment also fell. This is a sign that bearish sentiment is rising.
Source: Santiment
The declining indicator had a quick impact on Stellar’s price action. According to CoinMarketCap: dataThe price of XLM has fallen by almost 10% in the last 24 hours.
At press time, its market capitalization was $6.75 billion, trading at $0.2255. A possible reason could be high selling pressure.
Stellar’s Relative Strength Index (RSI) has been in overbought territory for several days. This may have motivated investors to sell their holdings to make a profit.
Whenever a sale occurs, it is often followed by a price adjustment. Chaikin Money Flow (CMF) also showed a downward trend, suggesting a selling trend.
Source: TradingView
XRP also has a similar fate
Like XLM, XRP has also fallen victim to price corrections. However, XRP investors did not panic as the token price only fell 2%. This was much smaller than XLM’s 10% decline.
As of this writing, XRP remains above $1 and is worth $1.09.
While that was happening, the long/short ratio of the token dropped significantly over a four-hour period.
This means there are more short positions than long positions in the market, which could cause more problems for the XRP price decline.
Source: Coinglass
AMBCrypto then checked the daily chart of XRP to see if it was under high selling pressure. It is no surprise that XRP and XLM share a similar fate.
read Ripple (XRP) Price Prediction 2024-25
Like Stellar, XRP’s CMF also recorded a downward trend.
Moreover, the Relative Strength Index (RSI) entered the overbought zone, suggesting that selling pressure may increase further.
Source: TradingView