XLM continues to outperform despite most top cryptocurrencies falling.
Data from Messari shows XLM increasing 5.21% over the past 24 hours whereas all other top cryptocurrencies are recording losses over this same time period.
A key factor playing into XLM’s outperformance is likely to be the ascending triangle pattern which has been forming for the past five weeks.
An ascending triangle pattern is a bullish trend continuation pattern that forms when price forms a series of higher lows and also a resistance level.
XLM has been forming higher lows for the past five weeks and was also meeting resistance at $0.092.
Today’s price action has resulted in price rising above the resistance level, but there is the possibility it may drop back below before the daily candle closes.
The hourly chart shows price initially reversing since rising above the resistance level.
It may now be a case of resistance turned support as the price seems to be finding buying pressure at the point of former resistance.
XRP has almost closed another week of consolidation. XRP has been consolidating near $0.313 for the past two months.
Each of the last eight weekly candles has either formed a Doji candle or have formed with a small body. A Doji candle is a candle where the open and the close are around the same point and reflects uncertainty from traders.
Price has dropped to support at $0.295 on several occasions and even below but has failed to close below on the weekly candle which would be a bearish signal.
The weekly RSI and MACD have also been trading mostly flat reflecting the consolidation.
Price has been forming both a series of higher lows and lower highs as it continues to consolidate near this level forming a triangle pattern.
With the downward trendline of the triangle pattern being far steeper, the pattern closely resembles a descending triangle pattern which is a bearish trend continuation pattern.
Below price is the $0.295 support level. Any drops below this level have found buyer liquidity at $0.277.
Above price is resistance at $0.33 which price has failed to overcome several times in trading over the past month.
- XLM outperforms as price rises above an ascending triangle pattern it had been forming.
- All other top cryptocurrencies apart from XLM are recording losses over the past 24 hours.
- XRP continues to consolidate around $0.33 and forms a triangle pattern.
- The triangle pattern closely resembles a descending triangle pattern which is a bearish trend continuation pattern given more odds of XRP breaking down from here.
- Other key levels to monitor for XRP are $0.295 and $0.277 as support and $0.33 as resistance.