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XRP/USD and Stellar Lumens [XLM/USD] Price Analysis: Sideways movement continues as bears trap bulls

Akash Anand

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XRP/USD and Stellar Lumens [XLM/USD] Price Analysis: Sideways movement begins again as bears trap bulls
Source: Pixabay

The cryptocurrency market’s rollercoaster movement resumed again, with coin prices becoming more and more volatile. Cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH] enjoyed a decent bullish run last week. However, XRP, the third largest cryptocurrency on CoinMarketCap, suffered an opposite fate. XRP’s competitor, Stellar Lumens [XLM], which is gunning for XRP’s remittance solution throne, also settled into sideways price movement.

XRP 1 day

The one day chart for XRP showed a downtrend that resulted in the price dropping from $0.522 to $0.36. The long term support was at $0.285.

The Bollinger bands were apart from each other due to the slight price outbreak. Due to the lack of any further updates, the bands had begun to converge slightly.

The Chaikin Money Flow indicator was below the zero line, a sign of the capital leaving the market being more than the capital coming into the market.

The Awesome Oscillator increased in amplitude slightly after market momentum picked up from being almost negligible on the charts.

XLM 1 day

Source: TradingView

XLM’s one day chart painted a similar picture to that of XRP, as the downtrend lowered the price from $0.0278 to $0.0135. The long term support for XLM was at $0.073.

The Relative Strength Index fell to the middle of the graph, an indication of the selling pressure and the buying pressure leveling out.

The MACD indicator moved as a conjoined pair after having undergone a bearish crossover. The MACD histogram was a mix of bearish and bullish signals.

The Parabolic SAR’s dotted markers were largely under the price candles. However, the last cycle before press time suggested some bearish activity.



Conclusion

The aforementioned indicators showed clear-cut signs of sideways movement having crept back into the cryptocurrency market. The only positive takeaway at the time of writing was the fact that market momentum had picked up in the industry after a lacklustre few months.





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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.

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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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