Stellar Lumens in a Symmetrical TriangleThe price of XLM reached a low of $0.115 on May 15. A rapid increase ensued and the price reached a high of $0.162 on May 16. The price has been decreasing since. XLM/USD has since been trading inside the symmetrical triangle outlined below: The price reached the resistance line on May 19 and 20. A gradual decrease followed. At the time of writing, the price is trading in the middle of the triangle. While the price may continue trading sideways for a period, eventually the resistance and support lines will converge. This will force a breakout or breakdown. Price fluctuations up or down, however, may cause XLM to move out of the trading pattern before convergence.
XRP Inside a Broadening WedgeUnlike XLM, XRP/USD has been trading inside a short-term ascending broadening wedge since May 17. On that day, a low of $0.356 was reached—generating the support line. Similarly, the resistance line was formed on the same day when a high of $0.382 was reached. The resistance and support lines have been touched four and five times respectively. At the time for writing, the price is trading very close to the support line of the wedge. Upward movement toward the resistance line may be expected. At the same time, the price might fall—causing a breakdown.
Assessing Moving AveragesTo better determine future price fluctuations for XRP, we analyze the cryptocurrency at one-hour intervals alongside the 100- and 200-period moving averages below: On May 21, the 100-period MA crossed above the 200-period one creating a bullish cross. This suggests that an uptrend is now beginning. Price appears more likely to move toward the resistance line based on this indicator. While XLM appears poised to break down from its short-term symmetrical triangle, a breakdown does not appear likely for XRP at the current time.
ConclusionTo conclude, XLM is trading inside a neutral pattern, while XRP inside a bearish one. Furthermore, XLM has developed long-term bearish divergence in the RSI. It is worth noting that Bitcoin (BTC) and many altcoins including Ethereum (ETH) also recently generated bearish divergence. On the other hand, XRP has not developed bearish divergence in the RSI. On the contrary, it has generated a short-term bullish cross. Therefore, we believe that XLM faces the possibility of a breakdown which could lead to rapid price decreases. The same cannot be said for XRP which we believe has already begun a new uptrend. A summary of our findings is presented in the table below:
|Ascending Broadening Wedge||Symmetrical Triangle||XLM|
|Short-Term Bullish Cross||Long-Term Bearish Divergence||XRP|
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.