There are no two ways about it: the recent thrust higher in the crypto space is finally up against a test that isn’t just about technical resistance. This time, it’s about news flow.
That provides us with an opportunity to gauge the true nature of this action. For a technician, everything the outside world brings to his mill is grist. In this case, that is clearly an advantage for those able to remain dispassionate and observant.
For today’s coins – Stellar (XLM) and Cardano (ADA) – this may be truer than for most, as we shall see below.
Stellar (XLM)
Price Analysis:
- High: $0.3086
- Low: $0.3000
- Major Resistance Level: $0.35
- Hourly MACD: Working Off Recent Overbought Extreme
When you talk about outperformers, Stellar (XLM) should come near the top of the list in terms of how it has behaved in the context of recent strength across the cryptocurrency space over the past couple of weeks.
We have seen this coin find sharp and strong-handed support down at the $0.18 level, and subsequently rally with extraordinary momentum, pushing just shy of 100% in total net percentage change in less than three weeks’ time.
Stellar (XLM) represents yet another case of a double bottom low formed at the trough confluence defining the late June and mid-July lows. This has been a pattern we have witnessed in many different coins, but one that has been capitalized on to a far greater extent in Stellar (XLM).
At this point, those involved in XLM during this “regulatory“ pullback suffered over recent hours should be looking for support to come into play somewhere between $0.28 and $0.30.
Cardano (ADA)
Price Analysis:
- High: $0.165
- Low: $0.160
- Major Resistance Level: $0.20
- Hourly MACD: Tight consolidation
Cardano (ADA) provides another interesting example of a coin that many might overlook during the course of recent strength as it has seemed – purely in terms of chart pattern – to play the role of a bit of a laggard.
However, a closer look would suggest that Cardano (ADA) has performed quite admirably during the flood of enthusiasm for the crypto space that we’ve witnessed over the past three weeks.
In fact, ADA has ramped almost 60% in that time, breaking through a number of key technical barriers in the process.
All of this has been fueled by the coin’s ability to hold a slightly higher low relative to its late June lows when it pushed back above the $0.13 level on July 13.
Crucially, this higher low was in line with previous support formed during late March and early April and was also mirrored by a strong bullish divergence showing up in the 14-day RSI oscillator.
Looking ahead, ADA’s ability to hold firm to support in the region of the $0.15 level will be critical as we gauge the staying power of this recent rally.
Happy Trading~
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com
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