XLM and XRP See Red as Their Meteoric Growth Halts, Here's Why

Two tokens have of late surprised investors with almost triple-digit growth, namely Ripple [XRP] and Stellar [XLM].

Two tokens that have recently surprised investors with almost triple-digit growth are Ripple [XRP] and Stellar [XLM].

While XRP sat comfortably in the top 10 list at the time of writing, XLM’s latest price increase sparked hope for its reentry in the top 20 list of cryptos by market capitalization.

XLM’s meteoric growth halts

Both XLM and XRP registered a massive growth of nearly 100% over the past few days. As a result of that, Stellar’s market cap increased substantially, earning it the 21st spot on the list of cryptos by market cap.

This left a difference of just over a billion between the 20th and XLM’s market caps. In case of a continued price rise, it seems viable for XLM to reenter the top 20 list again.

However, on-chain data suggested a different outcome. For example, XLM’s trading volume started to decline. Its Weighted Sentiment also dropped — a sign of rising bearish sentiment.

The declining metrics had a quick impact on Stellar’s price action. As per CoinMarketCap’s data, XLM’s price dropped by nearly 10% in the last 24 hours.

At the time of writing, it was trading at $0.2255 with a market cap of $6.75 billion. One possible reason could be high selling pressure.

Stellar’s Relative Strength Index (RSI) was resting in the overbought zone for quite a few days. This might have motivated investors to sell their holdings in order to earn profits.

Whenever a sell-off happens, it is often followed by price corrections. The Chaikin Money Flow (CMF) also registered a downtick, further suggesting a sell-off.

XRP has a similar fate

Like XLM, XRP also fell victim to a price correction. But XRP investors were not in a panic mode, as the token’s price only dropped 2%, which was way less than XLM’s 10% drop.

As of press time, XRP managed to stay above $1 and was valued at $1.09.

While that happened, the token’s Long/Short Ratio dropped significantly in the 4-hour timeframe.

This meant that there were more short positions in the market than long positions, which could cause more trouble for XRP’s falling price.

AMBCrypto then checked XRP’s daily chart to find out whether it was also experiencing high selling pressure. It was not a surprise to see XRP and XLM sharing a similar fate.

Read Ripple’s [XRP] Price Prediction 2024-25

Like Stellar, XRP’s CMF registered a downtick.

Moreover, its Relative Strength Index (RSI) was in the overbought zone, signaling the possibility of a further rise in selling pressure.