Key highlights:

  • XRP saw a remarkable 46% price recovery today as the cryptocurrency surged as high as $0.36.
  • XLM continued to rise by 8.44% today and is now up by an incredible 167% over the past week.

The two brothers, XRP and XLM, have seen some exciting moves in price action this week. It started yesterday when XLM managed to surge by over 100% to reach as high as $0.411 – where it met resistance at a bearish .886 Fib Retracement level.

Its big brother, XRP, was pretty much moving sideways over the past week after a disastrous performance in December, where it dropped by around 75%. It had found support at the November 2020 lows at about $0.22 for the first week of 2021 and rebounded from there today to reach as high as $0.36 before heading back to the current $0.337 level.

Why did XRP price jump by 50%?

There a few possible reasons that made today’s 50% XRP rally possible.

The first is the fact that XRP has finally rebounded from the 75% drop seen in December. After such a large drop on a large market cap coin, it can always be expected that investors are quick to take advantage of the low prices and start loading up on their holdings. However, it is important to remember that even dead cats bounce when dropped from a height and, although unlikely, this could just be a temporary relief rally. 

Another reason for the rally is that altcoins are pumping and investors look to invest in other coins than BTC, and XRP happens to be a pretty logical option as one of the largest cryptocurrencies by market cap.

There is another factor that always works in favor of XRP – the “cheap coin” effect. Many people who are new to investing in cryptocurrency think that coins with a low nominal have a better chance of moving up, and they think they can make a larger return that way. Although this is a misguided way of thinking, it is nevertheless a factor that works in favor of cryptocurrencies with a low nominal value like XRP and XLM.

Some users who are new to crypto also don’t know that it’s possible to buy fractions of cryptocurrencies – in other words, people often think that Bitcoin or Ethereum are too “expensive” to buy and they should go for “cheaper” coins instead. In reality, you can easily buy $20 worth of BTC or ETH just like you can buy $20 worth of any other cryptocurrency.

Lastly, although many exchanges are starting to de-list XRP, it is still possible to trade XRP (if you’re not a US citizen) on major exchanges such as Binance and OKEx.

Let us take a look at both of these tokens and highlight some potential areas of support and resistance moving forward.

Ripple Price Analysis

What has been going on?

Looking at the daily chart above, we can clearly see the sheer drop that XRP saw in December as it fell from above $0.68 to reach as low as $0.169 during the month.

As January started to trade, we can see that XRP established strong support around $0.22, which is the November 2020 lows. Although it did spike numerous times beneath this support, the bulls always managed to regroup and allow each daily candle to close above $0.22.

Yesterday, XRO started to move higher from $0.22 but struggled to close above $0.25. Today, the 50% price surge caused XRP to explode past $0.25, allowing it to break above $0.3 and reach the resistance at $0.352 – provided by a bearish .382 Fib Retracement and the 100-day EMA.

XRP price short term prediction: Neutral

Despite the strong rally today, XRP is still considered neutral right now. To turn bullish, it would need to pass the $0.6 level at least. On the other side, to turn bearish, it would have to close beneath $0.2.

If the sellers do push lower, the first level of support lies at $0.325 (200-day EMA). This is followed by support at $0.3, $0.28, and $25. Added support lies at $0.22 (Nov 2020 lows) and $0.2.

Where is the resistance toward the upside?

On the other side, the first level of resistance lies at $0.352 (bearish .382 Fib). This is followed by resistance at $0.4, $0.41 (bearish .5 Fib), $0.436 (1.414 Fib Extension), and $0.47 (bearish .618 Fib). Added resistance is found at $0.5 and $0.55 (2019 Highs).

Stellar Price Analysis

What has been going on?

Looking at the 4HR chart above, we can clearly see how XLM exploded by over 100% yesterday. It surged from $0.2 to break above $0.3 and reach as high as $0.411, where it met resistance provided by a bearish .886 Fibonacci Retracement level.

It could not overcome this resistance and has since dropped lower to trade at the current $0.34 level.

XLM price short term prediction: Bullish

XLM is considered strongly bullish right now. The coin would need to drop back beneath $0.2 to turn neutral and would have to fall beneath the 2020 lows around $0.12 to be in danger of turning bearish.

If the sellers break beneath $0.33, the first level of support lies at $0.3 (.382 Fib). This is followed by support at $0.265 (.5 Fib), $0.25, and $0.229 (.618 Fib). Added support is found at $0.2, $0.179 (.786 Fib), and $0.15 (.886 Fib).

Where is the resistance toward the upside?

On the other side, the first level of resistance lies at $0.35. This is followed by resistance at $0.367 (long term bearish .786 Fib), $0.39 (1.618 Fib Extension), and $0.411 (long term bearish .886 Fib).

Beyond $0.411, resistance is found at $0.45, $0.467 (May 2018 Highs), $0.494 (1.272 Fib Extension), and $0.537 (1.414 Fib Extension).



Back link Price Analysis: XRP & XLM – Here’s why XRP Rallied 50% | CoinCodex https://cloudtokenplus.com https://cloudtokenplus.com

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