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XRP price vs. Bitcoin has to break 30-month lows to start the rally

June 1, 2020

With Bitcoin (BTC) consolidating recently, many major currencies have shown strength with double-digit movements.. For example, Ethereum Ether (ETH) rose from $ 195 to $ 245, while Cardano (ADA) rose 65% over the week.

However, Some relatively large old coins are lagging behind, two of them are XRP and Stellar Lumens (XLM).the third and the 13th cryptocurrency by market cap. So what’s next for them?

XRP price vs. Bitcoin has to break 30-month lows to start the rallyXRP price vs. Bitcoin has to break 30-month lows to start the rally

Daily performance of the crypto market. Source: Coin360

Billions of XRP are launched every month

One of the main reasons that XRP lags behind other large companies is the monthly supply that reaches the markets from its headquarters. On the first of every month, one billion XRPs are activated and transferred to exchanges.

What does that mean? This means that a billion XRPs are sold on exchanges every month, which creates great selling pressure. Since the current price for XRP is $ 0.21, the total value of this delivery is $ 210 million each month.

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

The big difference between XRP and the other currencies is shown in the graphic. While Ether and Cardano are facing resistance (or breaking above that level) at the February peak, XRP is still 40% below.

On the other hand, an upward trend can also be seen. The XRP price has changed significantly as support to $ 0.19. At the same time, the moving 100 and 200 day averages (MA) come into play.

If XRP breaks the resistance of the 200-day MA and $ 0.23, the next levels are $ 0.28 and $ 0.34.

The XRP-BTC pair shows extreme weakness

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

The real problem with XRP lies in the fact that its BTC pair does exceptionally poorly. It is currently at its lowest level since December 2017, which is over 30 months!

Much needed for every upward movement It would be a rebound and a break above the previous support, which is between 0.00002300-0.00002350 Satoshis.

If XRP can fall behind in this area, a further rise towards the Satoshis level of 0.00003200-0.00003300 is likely. In addition, a move towards 0.00003200-0.00003300 Satoshis would mean a break above the 100-day and 200-day MA. A bullish sign.

However, The XRP price is still showing weakness and is reaching new lows, making trading in this currency difficult.

What happens if the 0.00002300-0.00002350 level cannot support Satoshis? Another downward movement towards the green zones is then on the table with the most likely support at the Satoshis level 0.00001550-0.00001625.

Why is XLM stronger?

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

While XRP shows weakness, XLM surprisingly shows strength and goes up. Could it be that XLM doesn’t have the selling pressure on Ripple?

It seems to have been stronger than XRP lately. However, When XLM recovers, XRP generally follows. It is therefore important to keep an eye on both currencies. If either begins to show strength, the other will likely follow.

The graphic shows some major effects of increased upward momentum. One of them is that the XLM price is above the 100-day and 200-day MA and is supported above these moving averages.

Along with this support, the green zone also offers support (which is horizontal support). It is vital to continue to show momentum as the cryptocurrency has been on the up since the massive collapse on March 12th.

In the meantime, the volume has increased significantly in recent times. The volume precedes the price, which allows assumptions that the currency is accumulating strongly to be derived from this data.

They are all a combination of factors that can drive you. Now what are the most likely scenarios for XLM and XRP?

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

Stellar lumens face crucial resistance to progress. Once the next level is at $ 0.075, a further rise towards the $ 0.085 level is expected. However, as Cardano has shown, this is just a level of resistance at which the price will tend to continue to rise. What’s the next major pivot for Stellar Lumens? It is $ 0.105 to $ 0.11, which would mean an increase of over 50%.

However, If $ 0.075 doesn’t break, a new test of $ 0.06 is within the odds. This level should be maintained as support to maintain the upward trend.

The Stellar Lumens BTC pair shows strength

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

The Stellar Lumens BTC pair showed significant strength and signals similar to Cardano before rising massively.

There was an apparent change in support / resistance to the 100 and 200 day MAs and a change in support to the Satoshis level of 0.00000700.

What’s next for Stellar Lumens? A breakthrough in Satoshis level 0.00000860-0.00000915 is the next goal. The cryptocurrency has been in this accumulation range for over a year. If this resistance breaks out, a strong upward continuation can be expected.

The arguments are there when the price turned the 100 and 200 day MAs into grants. But now the sequel still has to take place. XRP can only dream of such an increase if it loses its support area. As mentioned earlier, XRP generally follows as soon as Stellar Lumens starts moving.

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.