- Ripple (XRP), Stellar (XLM), and IOTA are showing signs of potential bullish breakouts despite recent market turbulence, with XRP forming a bullish pennant, XLM staying above key technical indicators, and IOTA progressing toward its Rebased upgrade.
- These coins face unique challenges but remain positioned for possible upward momentum driven by technical patterns and market developments.
The cryptocurrency market faced a sharp pullback recently, with Bitcoin tumbling from $102,000 to below $97,000, sending ripples across the ecosystem. As fears of a hawkish Federal Reserve grip the market, prominent altcoins like Ripple (XRP), Stellar (XLM), and IOTA are navigating turbulence. Here’s what their price charts and trends reveal.
Ripple (XRP): Poised for a Bullish Breakout?
XRP endured a sharp decline, sliding from a weekly high of $2.51 to $2.30. This retreat occurred after the coin tested the descending trendline—a crucial level connecting its major price swings since December 3.
Despite the drop, XRP remains at the 23.6% Fibonacci Retracement level and is forming a bullish pennant pattern, which signals potential upward momentum. If XRP breaks out, its next targets are $2.90—last year’s peak—and the psychological $3 mark.
Several factors support a positive outlook for XRP:
- ETF Speculation: Odds of an XRP ETF are rising on Polymarket.
- Stablecoin Growth: Ripple USD (RLUSD) is gaining traction.
- Legal Relief: The SEC’s diminishing case against Ripple bolsters investor confidence.
With these catalysts, XRP’s current volatility might precede a significant upward move.
Stellar (XLM): Resilience Amid a Retreat
Stellar’s price fell sharply to $0.4210, its lowest since January 1, after forming a bearish shooting star pattern. This drop pushed XLM below the 38.2% Fibonacci Retracement level.
Despite the setback, XLM retains a bullish edge:
- It remains above the Supertrend indicator and the 50-day moving average.
- The recent price action followed a breakout from a falling wedge pattern, often a precursor to upward momentum.
If XLM rebounds, it could retest last year’s high of $0.6362. However, the coin’s trajectory is closely tied to Ripple due to their shared origins. Challenges like underutilization of Stellar’s DeFi ecosystem remain hurdles for sustained growth.
IOTA: Betting on the Rebased Upgrade
IOTA has been riding waves of volatility as it gears up for its Rebased upgrade, introducing staking and higher transaction speeds. After forming a double-bottom pattern at $0.2783, the coin climbed above its neckline at $0.3512, hitting $0.40.
IOTA’s chart reveals a bullish cup-and-handle formation. If this pattern materializes, the next target is $0.42. Staying above the 50-day moving average adds strength to its outlook.
Final Thoughts
While the broader market wrestles with bearish sentiment, XRP, XLM, and IOTA show promise for bullish recoveries. Technical patterns, coupled with unique fundamental drivers, suggest these coins could rebound strongly. As always, investors should tread cautiously and stay informed.