The last 30 days, less attention has been applied to altcoins due to market fascination in the Bitcoin halving that occurred yesterday. Cardano has been an outlier, surging nearly +50% the last month. We take a look at current price action of XRP, Cardano ( ADA ), and Stellar ( XLM )
The last month, Cardano ( ADA ) has been an out-performer, surging almost +50%. Stellar has rallied double digits as well, with XRP struggling to gain momentum. On the 1 year scale, all 3 altcoins still need to witness significant upside to reach positive returns. Despite Cardano rally the last month, it’s still witnessing similar returns as XRP and Stellar the last 1 year.
Despite the underperformance by XRP, it’s still experiencing heavier volume. The last 30 days, XRP has done nearly 16X more volume than Cardano. The metrics in digital assets continues to prove the fact that volume may have little to do with price action / sentiment. Traditionally speaking, volume has been a main driver in stocks, but we’ve had a harder time assessing it in the crypto space. After numerous reports surfaced regarding volume being “fabricated” in crypto markets, investors and traders have spent less time applying it to technicals. XRP and Cardano price action during the last month is a perfect example.
XRP Technical Analysis
At the time of this reporting, XRP price is trading right around $0.195
With XRP falling -10.6% the last 7 trading sessions, it’s flirting with important territories. As we can see from the chart, XRP is now trading right on the 50 day moving average. It will be important for XRP price to hold this level. If it fails to do so, you could very well see XRP testing 0.168 to the downside.. On the flip side, XRP needs to get back above .20 to build some stability. If it can do so, it should retest 0.23 to the upside.
As discussed above, XRP really needs to hold that 0.20 support level. If it fails to do so, it could get bearish real quick. That’s why we are looking at XRP on a shorter term basis opposed to longer term outlook. We need to make sure it can maintain this base first.
Cardano ( ADA ) Technical Analysis
At the time of this reporting, Cardano ( ADA ) price is trading right around $0.04970.
As discussed above, ADA has had strong momentum the last month, surging nearly +50%. In addition, it’s maintained its ground the last week sitting right around +0.10% during a time when most major cryptocurrencies saw sharp sell-offs.
Cardano has built very strong support at $0.0465. Looking forward, we can use this support level to gauge momentum. If Cardano can hold this support level, it should try to test $0.059 to the upside which would represent potential +26% upside from current levels.
On the flip side, if Cardano rejects that solid support at $0.0465, you could see profit takers drive it to a $0.038 test to the downside. This would represent -18% downside risk from current levels.
Stellar ( XLM ) Technical Analysis
At the time of this reporting, Stellar ( XLM ) price is trading right around $0.064
As discussed above, Stellar has also experienced solid upward momentum the last 30 days, rallying about +30%. Unlike Cardano, Stellar witnessed a strong sell-off the last 7 days of -12.6% which shouldn’t go unnoticed.
Investors and traders will be watching the $0.065 support level for Stellar. As we can see from the chart, it’s hanging around this region for the time being. In the short-term, you should ultimately see the direction XLM wants to take.
If XLM pushes through $0.065 support, it will target $0.076 to the upside. This would represent potential +17% upside in the short-term. On the contrary, if XLM can’t maintain $0.065 support levels, it could test $0.057 to the downside. This would represent potential -12% downside risk in the short-term.