Examining the recent strength of the cryptocurrency complex can provide some interesting insights. First of all, the space can clearly be divided into the leaders and laggards. Such should be defined on merely technical grounds when making comparisons based on an asset class-wide dynamic.
Today’s pair of coins – Stellar (XLM) and Cardano (ADA) – provide excellent examples of this set of concepts.
Stellar (XLM)
Price Analysis:
- High: $0.3443
- Low: $0.3323
- Major Resistance Level: $0.35
- Hourly MACD: Recent Overbought Extreme
Stellar (XLM) has been on fire, up as much as 75% since the middle of this month.
For those who have been buying into the pullback in Stellar (XLM) off of its May highs, this action is decidedly welcome.
The coin has blasted off through its major moving averages, to test and even exceed the 200-day simple moving average on an intraday basis.
This brings into play the potential for a run at very important resistance at the $0.50 level, but it will need to get through the $0.35 level on a closing basis to set that in motion first.
Cardano (ADA)
Price Analysis:
- High: $0.176
- Low: $0.171
- Major Resistance Level: $0.20
- Hourly MACD: Emerging Trend Change Potential
Cardano (ADA) is coming off of the recent stronghold of support in the $0.12 area.
Recent action has included a higher-low pivot point following a lower-low test of the March lows. This is an extremely compelling combination of swings because it suggests weaker hands have already been kicked off the bus before stronger hands came in and started to support the pattern with resolve.
This is exactly the type of dynamic that we look for when reviewing any chart from a technical standpoint.
In addition, following a nice RSI divergence at the lows, the establishment of a higher low, and a breakout above the key 50-day simple moving average, we now see a clear and sharp rise in average trading volume over the past few days.
At this point, all the signs are in place for a possible run at a fresh test of the territory above the $0.20 level for Cardano (ADA).
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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