Connect with us

Analysis

XRP and Stellar Lumens [XLM] Price Analysis: XRP may be in imminent danger while XLM treads bullish path

Febin Jose

Published

on

XRP and Stellar Lumens [XLM] Price Analysis: XRP may be in imminent danger while XLM treads bullish path
Source: Pixabay

With Bitcoin breaching the $5,000-mark, many crypto-analysts and enthusiasts are of the opinion that the crypto-winter is finally over. However, following the collective market pump early this month, prices of all top cryptocurrencies witnessed strong correction, pulling the market into a bearish waters.

XRP, the second largest altcoin in the market, fell to a low of $0.29 before recovering and hovering around the $0.32 mark. At press time, XRP was valued at $0.328, with a market cap of $13 billion. The coin registered a 24-hour trade volume of $1.04 billion and was up by 0.85% against the US Dollar.

XLM, the ninth largest coin in the world, was valued at $0.115, at press time, with a market cap of $2.22 billion. The 24-hour trade volume of the coin was $255 million and was up by 0.85%. Following the Stellar-IBM partnership, the coin had surged considerably, but has since resorted to stagnant price movement.

XRP 1-day

Source: Trading View

Source: Trading View

The one-day chart for XRP showed a prominent downtrend from $0.555 in November 2018 to $0.366 in April 2019. Though strong uptrends were not seen, minor price movement was seen between $0.249 and $0.314. The resistances stood at $0.366 and $0.389, while the supports were at $0.305 and $0.293.

Bollinger Bands had its mouth open and signified a volatile XRP market. However, the moving average line was above the candlesticks and indicated a bearish market.

Awesome Oscillator indicated diminishing market momentum, with prices treading a bearish path.

Klinger Oscillator indicated a bearish market as the blue line was under the green line after a bearish crossover.

XLM 1-day

Source: Trading View

Source: Trading View

The one-day chart for XLM showcased a strong downtrend from $0.277 to $0.130 and minor uptrends between $0.087 – $0.100- $0.115. The resistances stood at $0.134 and $0.166, while the supports were seen at $0.100, $0.083 and at the token’s all-time low of $0.075.

Chaikin Money Flow indicated that money was flowing into the XLM market as the line was above the zero-mark at 0.07.

MACD indicator indicated a bearish market for the token as the MACD line was below the signal line.

Relative Strength Index showcased an equilibrium in buying and selling pressures at it stood at the 49-mark.



Conclusion

XRP could be moving towards a bearish market environment while XLM seemed to be in a mildly bullish territory.





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.

News

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

Avatar

Published

on

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.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending