Connect with us

Analysis

XRP, Aave, IOTA Price Analysis: 31 January

Published

on

Source: Pixabay

XRP sustained its northbound move on the charts and traded close to the $0.444 resistance at press time. AAVE remained within its parallel channel, with a breakout unlikely over the coming sessions and IOTA found support at $0.416 and registered some sideways movement.

XRP

Source: XRP/USD, TradingView

XRP maintained its upward trajectory on the charts as the price skyrocketed by over 50% in the past few sessions. Yesterday, the price snapped a local high of $0.5, a level not seen since the U.S. Securities and Exchange Commission filed a lawsuit against Ripple Labs. In fact, with gains of over 60% in the past seven days, XRP topped the rankings as the biggest weekly gainer among the top 10 coins by market cap.

The gains were backed by an influx of buyers and that was evident on the On Balance Volume index, which moved northbound on the charts. Although the Relative Strength Index moved in the overbought region, a reversal could be delayed as trading volumes were strong and buyers were plenty in the market. Moving forward, XRP could continue to trade close to its immediate resistance mark, before moving lower on the charts.

XRP made the news recently after Ripple Labs filed a response addressing the allegations laid out against it by the SEC.

Aave [AAVE]

Source: AAVE/USD, TradingView

AAVE moved slightly lower on the charts but remained well within its ascending channel. Overall, AAVE has been on an uptrend for the last 30 days and joined the list of altcoins that have seen gains of over 200% in the past month. Moreover, the uptrend could likely continue over the next few trading sessions, as the Relative Strength Index was yet not at its tipping point.

In such a case, an extended bullish rally could see AAVE break above its parallel channel and rise to newer record highs. On the flip side, a bearish scenario could see AAVE fall to $248 support. Even though the Awesome Oscillator noted some bearish movement, the momentum did not seem strong enough to guarantee a move below the present channel.

IOTA

Source: IOTA/USD, TradingView

IOTA was rejected at $0.437 resistance but cut its losses at $0.416 support as trading volumes picked up over the last 24 hours. The Awesome Oscillator also priced in the bullish momentum, as the green bars rose above the equilibrium point. However, a break above the current resistance mark was unlikely without a strong shift of momentum towards the buying side. Hence, some consolidation can be expected in the short term and IOTA could move between its immediate support and resistance levels.

The Chaikin Money Flow settled just above the half-line and suggested that capital inflows were subdued. If the index drops lower moving forward, the price could follow suit and move southbound on the charts.

Where to Invest?

Subscribe to our newsletter

A business graduate with a keen interest in emerging markets across South East Asia. As a financial journalist, he covered stocks and market reports across Australia and New Zealand as well.