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XRP and Stellar Lumens [XLM] Price Analysis: Bulls lead resistance against market correction

Namrata Shukla

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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Coins march on with bulls leading the market
Source: Pixabay

The arrival of the bulls was celebrated by many cryptocurrencies this week. However, the market fell soon after, a victim of strong market correction forces. XRP, the third largest cryptocurrency on CoinMarketCap, was pumping at press time and Stellar Lumens [XLM], the eighth largest coin, was also seen sailing through a rough market.

XRP I day chart

At press time, XRP was valued at $0.36 with a market cap of $15.09 billion. The 24-hour trading volume of XRP was $2.20 billion and it noted a growth of 17.18% over seven days. Over the last 24 hours, XRP surged by 4.46%. However, the coin had started correcting itself within an hour by 2.12%.

Source: Trading View

Source: Trading View

According to the long-term chart of XRP, a strong downtrend was observed from $0.5551 to $0.3549, and no significant uptrend was traced on the chart. The cryptocurrency marked resistance at $0.3880 and support at $0.2926.

Bollinger Bands appeared to be diverging, increasing the volatility of the market. The moving average line was under the candlesticks and pointed at a bullish trend.

Awesome Oscillator also pointed towards strong bullish momentum.

Chaikin Money Flow indicated a bullish run as the marker was above zero.

Stellar Lumens [XLM]

At press time, XLM was valued at $0.1244 with a market cap of $2.39 billion. The 24-hour trading volume of XLM was $419 million and it surged by 16.11% over the past week. Over the last 24 hours, XLM grew by 0.82%. However, it was dipping by 1.38% over the past hour.

Source: Trading View

Source: Trading View

According to the long-term chart of XLM, a massive downtrend was observed from $0.2777 to $0.1229. XLM failed to note any significant uptrend on its long-term chart. The cryptocurrency marked resistance at $0.1349 and support at $0.1009.

Parabolic SAR pointed towards a bullish trend as the markers were aligned under the candlesticks.

MACD line was over the signal line, marking a bullish trend.

Relative Strength Index indicated that the buying and selling pressures had evened each other out. However, the marker was close to the overbought zone.



Conclusion 

A strong bullish trend was observed for both XRP and XLM as all the indicators forecast a bullish reign.





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Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.

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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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