Ripple and Stellar Surge: A New Dawn for Layer 1 Tokens?
1min read Ripple (XRP) and Stellar (XLM) have both demonstrated significant gains on Friday, sparking speculation about the potential for further growth and whether these layer 1 blockchain tokens have reached their lowest point following the recent downturn in the crypto market.
$XRP has surged over 8% today, indicating renewed momentum. The daily chart suggests that a potential bottom occurred on February 3rd, as evidenced by a long wick pointing to robust buying interest when the price hit the crucial $1.96 support level. However, the path forward may not be entirely smooth, with a horizontal resistance lying ahead, aligning with a descending trendline. If bulls manage to push the price past this barrier, a new local high might be achieved. Conversely, failure to break through could see the price dropping back to the $2.32 support level, and potentially further to the major horizontal support beneath it.
The monthly chart for $XRP presents a fascinating view, with a price structure developing above the significant horizontal support at $1.96, affirmed by the long wick. Nevertheless, the rapid price increase makes it challenging for the market to stabilize quickly, and it's more likely that sideways consolidation will follow. The Stochastic RSI at the chart's base suggests potential downward movement as it approaches a crossover.
$XLM has been trending downward since November 2024, with a series of lower highs and lows bringing it back to the major support level of $0.31. For a trend reversal to begin, this bounce needs to push past current resistance and the descending trendline. Examining the broader context for $XLM, it appears that the downtrend might be stabilizing, with the current candle's long wick downwards underscoring the strength of the underlying support. However, the Stochastic RSI at the chart's bottom indicates the lines are continuing to move downward past the midpoint, with just two days remaining for confirmation. This could pose a significant challenge, suggesting a potential extended phase of lateral price movement until the indicators either reach the bottom or bounce back from the 20.00 level.
