Ripple’s XRP and Stellar’s XLM Extend Bearish Correction Amid Negative Signals

On Tuesday XRP dropped more than 4% and XLM fell over 5%, extending a short‑term correction in the cryptocurrency market. Derivative metrics show a long‑to‑short ratio below 1 for both assets (0.83 for XRP, 0.98 for XLM) and funding rates turned negative, indicating dominant short‑position risk and a "risk‑off" sentiment.

Microsoft’s Copilot AI model projected the most bullish 2026 price target for XRP, contingent on formal regulatory recognition by the SEC and CFTC and large institutional inflows such as BlackRock‑backed ETFs. The forecast also highlighted Ripple’s expansion of its RLUSD stablecoin in Japan, token‑isation partnerships and ledger upgrades as fundamentals. Conversely, Copilot warned that stalled regulation could keep XRP trapped in a bearish range around $0.85‑$1.50, with the current price near the lower bound of its modeled scenarios.