Connect with us

Analysis

XRP and Stellar Lumens [XLM] Price Analysis: Bear looms over XLM coin as XRP exhibits mixed signals

Avatar

Published

on

Source: Pixabay

The cryptocurrency market witnessed more tumultuous movement, as prices of leading coins continued to tumble down. At press time, Stellar Lumens [XLM] held a market cap of $2.21 billion, and was priced at $0.11. The ninth largest cryptocurrency listed on CoinMarketCap accounted for a 24-hour trading volume of $19.30 billion. It registered a fall of 4.58% over the last 24 hours, owing it to the latest market slump.

XRP, the third leading cryptocurrency, also fell by 4.06% over the day and was priced at $0.32, at press time. The market cap was recorded to be $13.57 billion, while the 24-hour trading volume was $41.79 billion.

XRP 1 day

Source: TradingView

The candlestick arrangement for XRP’s one-day chart exhibited an uptrend from $0.29 to $0.26, along with a downtrend from $0.58 to $0.45. The resistances for this chart were marked at $0.38, $0.45 and $0.38, while points of support were found at $0.29 and $0.26.

Bollinger bands: The parallel bands depicted low volatility and a stagnant price forecast for XRP.

Awesome Oscillator: The closing bars in red predicted fall in price momentum for the coin market.

Chaikin Money Flow: The CMF was above the zero-line. Hence, a capital pump was predicted.

XLM 1 day

Source: TradingView

XLM’s one-day chart exhibited an uptrend from $0.27 to $0.48 and a downtrend from $0.56 to $0.37. Resistance for this chart was marked at $0.38, $0.45 and $0.58. Support points for XLM stood at $0.29 and $0.26.

Parabolic SAR: The dotted markers were above the candlesticks, suggesting a bearish pattern forming for XLM.

MACD: The MACD line was below the signal line post a bearish crossover.

Klinger Oscillator: The reading line was also below the signal line and pictured a bullish pattern for the coin.



Conclusion

XRP projected mixed signals with low volatility, while XLM showed the coin’s price siding with the bear.





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

News

JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

Avatar

Published

on

JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending