After a monstrous rally during the middle of Q4, 2024, the crypto markets failed to hold the elevated trend, compelling most cryptos to plunge and consolidate within a narrow range. The prices of Ripple (XRP) and Stellar (XLM) also faced a massive pullback that dragged them to the monthly lows. However, as the bulls wake up, these tokens have barged into the resistance and may also manifest extreme strength in the coming days.
The XRP price is trying hard to break above the consolidated range, and it has remained stuck for over a month. The latest rebound substantiates the bullish claim but simultaneously suggests the possibility of a bull trap as the bears remain extremely vigilant. Therefore, the XRP price rally may, however, break above the current consolidation but eventually may face a rejection.
The daily chart of XRP suggests the price is attempting to breach the resistance of a bullish pennant. Meanwhile, the token also displays the possibility of a bearish divergence, which indicates the possibility of a bullish trap as the MACD indicates a drop in the selling pressure. while the levels are about to undergo a bullish crossover. Besides, the Ichimoku cloud, which remains in the bullish zone, may further undergo a bullish crossover. Therefore, the XRP price is expected to breach the resistance of the pennant in the next few hours and reach the immediate resistance at $2.68. If it fails to do so, it may remain consodliated within the pattern, above $2 until it reaches the apex.
The Stellar price broke out of the horizontal consolidation that it held for over a couple of months, which was followed by a rejection from the yearly highs. Since then the price has been trading within a falling wedge and the latest rebound initiated a breakout from the range, flashing bullish signals for the crypto. However, the XLM price may undergo a small pullback before initiating a fresh bullish move towards the ATH
As seen in the above chart, the volume has risen significantly after a massive squeeze, hence indicating a notable rise in the trader’s interest over the token. The bullish divergence in the on-balance volume or OBV, substantiates the bullish claim, raising the possibility of a continued ascending trend beyond $0.5. However, the price may face a minor pullback as the Supertrend remains bearish. Therefore, the Stellar (XLM) price is expected to slightly drop below $0.4 which may attract notable volume, triggering a rally beyond the 2024 highs, paving the way for a new ATH above $1.
XRP’s current price may breach resistance and reach $2.68, but a breakout to $3 could face rejection due to potential bearish divergence.
XRP is rising due to strong resistance break attempts, bullish pennant formation, and decreasing selling pressure, though a bull trap remains possible.
XLM is surging due to a breakout from consolidation, increased volume, and bullish divergence, signaling potential for a rally beyond $0.5.
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