XLM under XRP Shadow

XLM posted lukewarm momentum at the start of Friday's trading session. CoinMarketCap data indicates that the price of the XRP competitor is mildly up by 90 basis points

Stellar (XLM) showed lukewarm momentum at the start of Friday’s trading session.

CoinMarketCap data shows that the price of the XRP (XRP) competitor is mildly up by 90 basis points, trading at $0.2864. Stellar is now the underdog compared to XRP, which is showing strength amid Ripple’s closure with the financial watchdog.

Stellar’s token has risen by 4% as the larger cryptocurrency market begins to recover over the past week, while XRP is up by 6% over the same period.

The growing pessimism over the altcoin is further highlighted by the fact that XLM’s funding rate has gone negative for the first time in a week. When the funding rate, a periodic fee used in perpetual futures contracts, goes negative, short positions are in the majority, and traders are becoming more pessimistic about a price decline.

More traders will bet on XLM’s price falling, increasing the downward pressure on the stock and causing demand to continue to decline. It remains to be seen if market correlation indicates that more significant price reversals are imminent, but the current state of affairs shows that the much-anticipated “altcoin season” has yet to begin in earnest.

The next few days will likely be crucial for Stellar investors as they look for signs of either further decline or a possible recovery in XLM’s price action, with the crypto market as a whole uncertain.