Stellar Follows XRP’s Downward Trajectory As It Declines 10% Amidst High Selling Pressure

Both Stellar (XLM) and Ripple (XRP) have stunned crypto investors with their triple-digit growth recently. While XRP emerged as the top gainer on November 20, XLM seems to have made it to the top 20 cryptocurrencies list based on its market cap.

In the last few days both the tokens have gained 100% which resulted in Stellar making it to the the top 20 list as its market capitalization spiked significantly. However, it soon got displaced to the 21st position as XLM is 1 billion short in its market cap to rise to the 20th position in the list. Analysts predict that Stellar will soon stage a re-entry into the list if it continues to rally like this.

However, Stellar’s on-chain data indicates that the token’s trading volume has begun to decline due to a bearish sentiment. The weighted sentiment of XLM also confirmed the bearish trend which caused the token to see a 10% decline in the last 24 hours as it traded at $0.2255 with a market cap of $6.75 billion.

Many analysts have attributed this decline in the Stellar’s price to the high selling pressure at its current level. The overbought zone in the Relative Strength Index (RSI) also vindicated this analysis as investors often sell tokens at such points to maximise profits.

Such a sell-off often leads to price corrections. This was further validated by how the Chaikin Money Flow (CMF) has shown a downtick, making it clear that Stellar has reached a sell-off point.

Similar to XLM, Ripple’s XRP is also under price correction. However, XRP holders are not panic selling and the token has only gone down 2%, unlike XLM’s 10% decline. XRP was trading at $1.17 when the day began on November 20 and managed to stay above it all through the day, ending at $1.09.

The long/short ratio of XRP saw a major decline in a 4-hour timeframe today which shows that XRP holders are opting for short positions over long positions which can lead to a price drop in the future.

Comparing both Stellar and Ripple’s daily price charts revealed that XRP too was under high selling pressure like XLM and can have a similar fate. XRP’s CMF also showed a downtick like Stellar and its RSI is in the overbought zone - all of which point towards mounting selling pressure.

At the time of writing, Stellar was trading at $0.2439, up 4.48% in the last 24 hours with a market cap of $7.30 billion while the trading volume increased by 43.87% to reach $1.57 billion. Meanwhile, XRP was down 2.15% in the last 24 hours to trade at $1.09 with a 12.14% surge in its trading volume which stood at $6.56 billion while the market cap declined to $62.11 billion.