XLM crypto drops 10% in 24 hours: Is Stellar following XRP’s steps?

• XLM crypto dropped by 10% in the last 24 hours.
• Selling pressure on both XLM and XRP increased. 

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

While XRP sat comfortably in the top 10 list at press time, 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

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

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

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

Source: Santiment

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 press time, it was trading at $0.2255 with a market cap of $6.75 billion. A 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. 

Source: TradingView

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 this writing, 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. 

Source: Coinglass

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. 

Source: TradingView