XRP or XLM, Which Is More Powerful in the Crypto Market? - Technical Analysis

cryptoknowmics.com 2021-01-14 09:00
Reading time: ~2 m

Despite the mini-collapse that happened yesterday in the crypto market, the XRP market has shown itself on the good side. The range of $0.24-$0.26, which buyers have won passed the first test for strength. The XRP price fall by 20% showed that there are interested buyers in the market who despite previous negative news, are interested in the coin.

The chart clearly shows that buyers did not allow price to remain in the range of $0.24-$0.26 for a long time. In addition, the trading volumes with help of which sellers wanted to lower the price on 11 January are much smaller than those that powerfully hit the range of $0.24-$0.26 from 23 to 29 December. The decline in the volume and nature of the price fall indicates a local weakness of sellers. Therefore, the main local scenario of the XRP price movement is the price growth to $0.32. The critical point of this scenario is $0.29. Above this mark, buyers will finally take the initiative into their own hands.

Stellar (XLM) is one of the strongest coins at the moment

However, looking at XRP and mentioning the background, doubts about breaking $0.24-$0.26 can creep in, then looking at the XLM chart – they disappear:

The fantastic growth of the XLM market by more than 200% in early January has a positive effect on buyers’ sentiment. The wave of fall moving in a clear channel corrected the previous wave of growth by 61.8%. Trading volumes do not look threatening. And the nature of the price fall shows that sellers have little power in this price range. The critical point for the growth trend continuation is the mark of $0.304. Given that the future of the XLM coin looks a little brighter than XRP, it is quite possible to predict that the price will continue to grow to $0.5.

Today’s attempt by sellers to continue the fall wave in the XLM market seemed futile. If the BTC price was able to test the critical range of $32,000-$34,000, the XLM buyers did not even allow an approach to the critical point of $0.233. Therefore, even with a negative scenario in the BTC market and the price fall continuation – XLM investors should feel much more comfortable.