Ripple (XRP) and Stellar (XLM) are both up strongly on Friday. Is this the start of further upside to come, and have both of these layer 1 blockchain tokens found a bottom after the recent crypto downtrend?
$XRP motoring higher
Source: TradingView
Up more than 8% on Friday so far, the $XRP price is motoring again. The daily chart shows that a local bottom was likely made on 3 February. The very long wick to the downside shows the strong buying interest as the price came down to the major $1.96 horizontal support.
However, all is not likely to be plain sailing. Horizontal resistance is up ahead, and this coincides with the descending trendline. If the bulls can force the price beyond this, a new local high could be on the cards. If on the other hand the price is rejected, there could be a return to support at $2.32, and then the aforementioned major horizontal support below this.
A bullish and bearish macro picture for $XRP
Source: TradingView
The monthly chart for $XRP is really interesting. There does now appear to be price structure forming above the major horizontal support at $1.96, and the very long wick down to this level confirmed this.
That said, the price has gone up so quickly that it will be very difficult for the market to absorb this move any time soon. More sideways consolidation is the more likely path. At the bottom of the chart, the Stochastic RSI (momentum indicator) is starting to show a potential cross back down.
$XLM in a downtrend since November
Source: TradingView
The $XLM price has been in a downtrend since November 2024. Lower highs and lows have brought the price all the way back to the major horizontal support at $0.31. This latest bounce needs to take the price through the current resistance, and also the descending trendline, in order to begin to reverse the downtrend.
$XLM strong horizontal support is confirmed
Source: TradingView
The bigger picture for $XLM shows how the downtrend may be bottoming. The current candle has a long wick to the downside, and this confirms the strong horizontal supports below.
Nevertheless, the Stochastic RSI at the bottom of the chart is displaying that the indicator lines are continuing to cross down past the midpoint, and there are only two days left for this to be confirmed. This could prove to be a major headwind going forward, and could signal a longer period of sideways price action until the indicators either reach the bottom, or turn back up from the 20.00 level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
