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Cardano and Ethereum prices rise along with Bitcoin: will XLM continue?

May 29, 2020

The Bitcoin (BTC) price has been trading in a defined range in the past few weeks as the halving hype is over. Bitcoin’s price history also led to increased volatility in alternative currencies, and some of the smaller currencies showed impressive strength. So far, the main drivers have been Theta Token (THETA) and Band Protocol (BAND).

The days before The largest capitalized altcoins began to rise, with Cardano (ADA) and Ether (ETH) being the main players. As Bitcoin tries to find a way back to $ 10,000, traders will be watching closely for further steps to follow from these large-cap alternative currencies.

Daily performance of the crypto market. Source: Coin360

Cardano and Ethereum prices rise along with Bitcoin: will XLM continue?Cardano and Ethereum prices rise along with Bitcoin: will XLM continue?

Daily performance of the crypto market. Source: Coin360

Ether breaks the $ 215 mark

ETH USDT 1-day chart. Source: TradingView

1-day chart of the ETH / USDT pair. Source: TradingView

The daily chart shows an obvious compression between $ 195 and $ 215, which eventually turned out to be higher. In addition, the diagram shows some critical indicators for further upward momentum.

The key indicators for bull or bear markets are support above or below the 100 and 200 day moving average. As long as the price of a particular asset remains above the moving averages, the asset is in an upward trend.

Why is that important? Throughout the previous upward cycle The Ethereum price stayed above these indicators, which peaked at $ 1,400 in January 2018.

It should be noted that the volume has also increased enormously in recent periods and shows signs of accumulation if the volume precedes the price. A similar sign is shown in the Altcoins market cap table.

Altcoin’s market cap is preparing for $ 110-140 billion

Altcoin market cap 1 day chart. Source: TradingView

1-day market capitalization table for altcoins. Source: TradingView

The total market cap for altcoins shows an impressive increase in volume, while the cap also converts the 100 and 200 day moving averages (MAs) into supports.

As shown in the graph, support is found in these MAs, where USD 68- USD 72 billion are essential support.

In addition, resistance is at $ 113 billion and $ 136 billion. This is crucial resistance as the $ 113 billion level can be compared to that of Bitcoin in 2018. Bitcoin’s price is now well above the $ 6,000 mark as it is currently between $ 9,100 and $ 10,000.

So it is time for the old coins to rise, and the next levels of resistance are $ 113 billion and $ 136 billion. If the total market cap rose to $ 136 billion, it would mean a 60% increase in the total market cap of altcoins.

What’s up with Cardano?

ADA USDT 1-day chart. Source: TradingView

1-day ADA / USDT pair chart. Source: TradingView

The last coin with the strongest capitalization last week was Cardano, which has moved 30% over the past few days. This recent surge caused the cryptocurrency to return to the February 2020 level, the losses of which have vanished due to the March 12 market crash.

What is behind this advance? Basically, a new roadmap for the introduction of Shelley is being completed, which triggers a further price recovery.

On the technical side, however, the price previously held the 100- and 200-day MA as support. After that, the green space became $ 0.05 in support, fueling the continuation of the upward trend.

Currently, the next resistance for this pair is $ 0.07, with a potentially exciting support level at $ 0.057 – $ 0.06.

If USD 0.057 – USD 0.06 is confirmed as support, the rally may continue towards USD 0.07 and USD 0.09While the next goals are on the charts.

Confused with previous statements, Cardano’s trading volume is also increasing this week. One possible explanation is that investors are switching from Bitcoin to Altcoins as various projects are finally starting to bring their products and platforms to the market.

Will Stellar Lumens follow Cardano?

XLM USDT 1-day chart. Source: TradingView

1-day XLM / USDT pair table. Source: TradingView

In the meantime, other large old coins are also showing signs of a possible continuation upwards. Cardano has recovered in the past few days, ether has broken $ 213 – $ 215 as a key resistance level. Stellar lumens (XLM) also show signs of possible continuation.

The green zone at $ 0.06 to $ 0.0625 needs to remain support, but overall the structure is starting to form a bullish flag. This is due to the fact that the Stellar Lumens price continues to show higher lows, leading to a possible upward continuation.

The next main target for the Stellar Lumens is resistance at $ 0.085 – $ 0.087.

What you can expect from ADA / BTC and ETH / BTC pairs

The ETH / BTC pair was traded within an area structure from August to September 2019. However, since it is low in September 2019, the price has reached higher structural lows.

ETH BTC 1-day chart. Source: TradingView

1-day chart of the ETH / BTC pair. Source: TradingView

As a result, the trend for the ETH / BTC pair can be classified as an upward trend. What are the next big hurdles for ether?

First, a move above the 0.024 Satoshis (Sats) level should be beneficial for the continuation. The Satoshis level of 0.024 coincides with the 200-day moving average (MA) and must be broken for a sustainable extension. As mentioned earlier, the search for support above the 200-day moving average (MA) is a key indicator of further upward momentum.

As soon as the price of ether is above the resistance level (a new test of the 0.021 Satoshis level occurs or not), a new higher peak should be reached.

By creating a new higher peak, the price of ether will finally break out of this range. If the value is 0.027 sats higher, the next target is 0.034 sats.

Where Ether is still fighting moving averages, the ADA / BTC pair are already leading the pack and trading on them.

ADA BTC 1-day chart. Source: TradingView

1-day ADA / BTC pair table. Source: TradingView

Cardano’s graph on the BTC pair shows an apparent rise in resistance at 0.00000625 sats, after which the price rebounded towards the next resistance at 0.00000680 – 0.00000700 sats.

This is the final hurdle before a new wave. Preferably, the price for another test of the Sats level 0.00000625-0.00000640 should drop as support.

However, Once the price of the ADA / BTC pair exceeds the Sats level of 0.00000690, a further, more sustainable rise towards the Sats level of 0.00001000 – 0.00001070 is within the possibilities. Such an increase would mean a further increase of 60% to 70%.

The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.