- Despite market volatility and inflation concerns, XRP and XLM gained over 10 percent this week.
- XRP’s network added 200,000 new wallets after former SEC Chair Gary Gensler’s departure.
The crypto market experienced temporary violent swings due to the last US Consumer Price Index (CPI) release. However, certain tokens, including Ripple (XRP) and Stellar (XLM), held their own and managed to post some good gains despite the prevailing market conditions.
The cryptocurrency market cap shrunk as Bitcoin and Ethereum fell, and inflation continued to be a major concern. On the other hand, XRP and XLM showed double-digit percentage gains and moved in the opposite direction of the rest of the market.
XRP reached $2.75, up over 12% since the beginning of the week. XLM also appreciated 10%, and the price was found to be trading at nearly $0.35. Their higher performance indicates increased investors’ confidence, which is not reflected in macroeconomic factors.
Besides, price analysis on-chain data reveals an increase in the usage of the XRP token. The number of XRP holders has increased by over 200,000 since January 14 and is now 6.6 million.
Market analysts have attributed this to changes in sentiment following the resignation of former SEC Chair Gary Gensler. Analysts state that cryptocurrencies are anticipated to thrive in a favorable regulatory framework that extends the life of XRP.
A growing address base often relates to more transactions and liquidity, which enhances the network. Continued adoption also means that XRP can sustain its bullish run in the future if the current trend is to be followed.
XRP Price Forecast Eyes on $3.00
XRP remains in consolidation and is currently moving around $2.54. The Parabolic SAR implies bearish pressure is present and continuing, but the latest attempts to reverse show signs of a bullish reaction. If the price goes above $2.60, the bulls will be in control, with the $2.80 price level being the most significant barrier.
If bullish sentiment strengthens, XRP may target $3.00. However, failure to sustain upward movement could see the token retest support at $2.40, with further downside risk to $1.78. On-chain data shows a rise in XRP trading activity.
However, if the bulls manage to gain the upper hand, XRP might approach $3.00. Nonetheless, failure to analyze the higher time frame and maintain the upward trends is heading toward the $2.40 support, with further testing at $1.78. On-chain data shows that XRP’s trading activity seems to have significantly increased.
According to Coinglass, 24-hour XRP futures brought in $3.81 million in liquidations, with long trades being severed for $2.47 million and short ones for $1.35 million. However, the network expansion of XRP and its increasing number of transactions suggest that investor interest has not waned.
XLM Price Forecast Targets $0.50
XLM faces a major resistance level at 0.35$ while rising with support at $0.3354. The Donchian Channel suggests there is range constriction, typifying confused trading patterns in the market.
Any breakout above $0.35 would enhance the demand side and, therefore, approve higher prices with a target of around $0.44. The MACD indicator points to a possible shift in momentum, and a buy signal will enhance it to increase gains.
If the XLM price could consolidate, or sellers could drive it back down to the $0.30 support level, a breakdown below this level may pull the price a bit lower toward the $0.26 level.
Recommended for you:
Credit: Source link
