The cryptocurrency markets experienced a significant rally in the middle of Q4, 2024, but unfortunately, many cryptos were unable to sustain the upward trend. This led to a sharp decline and consolidation for most tokens, including Ripple (XRP) and Stellar (XLM), which plummeted to monthly lows. However, there are signs of a bullish resurgence as these tokens push against resistance levels, hinting at potential strength in the days ahead.
Ripple (XRP) Price Could Rise Above $3
The price of XRP has been struggling to break out of a consolidated range that has persisted for over a month. While there have been recent signs of a bullish rebound, there is also a risk of a bull trap as bears continue to exert pressure. The daily chart for XRP shows that the price is attempting to breach the resistance of a bullish pennant pattern. Despite the potential for a bullish breakout, there is a possibility of a bearish divergence, which could result in a rejection at higher levels. The MACD indicator suggests a decrease in selling pressure, while the Ichimoku cloud remains bullish. If XRP can break above the current consolidation, it may reach immediate resistance at $2.68. However, failure to do so could lead to continued consolidation within the pattern.
Stellar (XLM) Price Aims for a 30% Rise
Stellar (XLM) recently broke out of a horizontal consolidation phase that had lasted for several months, followed by a rejection from yearly highs. The price has since been trading within a falling wedge pattern, with a recent rebound signaling bullish momentum. While a minor pullback may occur before a fresh bullish move, the volume has significantly increased, indicating growing trader interest in the token. The bullish divergence in the on-balance volume supports the upward trend, suggesting a potential move beyond $0.5. However, the Supertrend indicator remains bearish, indicating a possible drop below $0.4 before a rally towards new all-time highs above $1.
In conclusion, both Ripple (XRP) and Stellar (XLM) are showing signs of bullish strength as they push against key resistance levels. Traders should remain vigilant for potential pullbacks and rejections at higher levels, but the overall outlook for these tokens appears positive. As always, it is crucial to stay updated on the latest developments in the crypto world to make informed investment decisions.