Buying Pressure is Back! XRP and Stellar Lumens, On-chain Indicators All Turn Bullish

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

As XRP (Ripple) and Stellar Lumens (XLM) consolidate energy for a technical breakout and attempt to break above the upper trendline of their descending channels, on-chain data and indicators are simultaneously suggesting a potential upward movement, drawing significant attention from investors.

According to investment media outlet FXStreet on May 12 (local time), XRP (Ripple) and XLM are currently showing cautious upward momentum based on improved momentum indicators and positive on-chain figures. Experts believe that XRP is testing the upper resistance line of its long-standing descending parallel channel at $1.48, and a breakout above this level would signal a new rally. XLM is also consolidating between key Exponential Moving Averages (EMAs) undergoing a phase of accumulation before a directional decision.

A moderate bullish bias is also being observed in on-chain data. According to CryptoQuant data, XRP's spot market continues to show a buyer-dominant trend, and Stellar Lumens is also displaying positive signals, indicating more than neutral sentiment. The atmosphere in the derivatives market is also encouraging. CoinGlass's weighted funding rate data showed positive values as of Tuesday, with XRP at 0.0048% and XLM at 0.0030%, indicating a widespread optimistic sentiment where long-position investors are betting on an uptrend even while paying fees.

Technically, XRP is currently trading around $1.47, holding steadily above its 50-day EMA of $1.41. The Relative Strength Index (RSI) is maintaining in the early 60s, and the Moving Average Convergence Divergence (MACD) is improving above the zero line, indicating strengthening upward momentum. However, the channel's upper boundary at $1.48 and the 100-day EMA at $1.49 are acting as short-term ceilings. If XRP decisively breaks through this zone on a closing basis, a steep rebound to the 200-day EMA at $1.71 and the key horizontal resistance at $1.90 is possible.

Stellar Lumens (XLM) is currently showing mixed sentiment, trapped between its major moving averages around $0.167. While the 50-day EMA at $0.165 provides downside support, the 100-day EMA at $0.174 and a descending trendline are strongly suppressing upward movement. The RSI is showing a neutral trend around 54, but the MACD line is slowly rising above the zero line, suggesting that a recovery to the dense supply zone around the 200-day EMA at $0.204 could follow if the upper resistance is broken.

Market experts evaluate that since downside support has been confirmed for both assets, whether a breakout with accompanying trading volume occurs this week will be a critical turning point determining their mid-to-short-term direction. If support lines break, XRP could retreat to $1.30 and XLM to $0.136, re-entering a bear market, requiring caution. However, considering the current pace of improvement in momentum indicators, the prevailing analysis suggests that if resistance is successfully broken, they are highly likely to become leaders driving a bullish market across altcoins.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*