Stellar: 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, to trade at $0.2864. Stellar is now the underdog compared to XRP, which shows some strength amid Ripple’s closure with the financial watchdog.

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

The altcoin’s growing pessimism 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 dominate, indicating that traders are becoming increasingly pessimistic about a price decline.

More traders will bet on XLM’s price falling, elevating the downward pressure on the stock and causing demand to continue declining. It remains unclear if market correlation indicates that more significant price reversals are imminent, the current state of affairs shows that the much-anticipated “altcoin season” has not yet begun in earnest.

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

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.

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