Though it effectively stagnated following an impressive 15% weekly surge earlier in March, Stellar (XLM) – widely considered a major rival of the more popular XRP – again appears poised for a renewed rally.
Specifically, with its press time price of $0.17, the cryptocurrency is close to a critical resistance level at $0.183 and, should it prove its ability to cross above it, XLM could once again rally.
Furthermore, a breakout could send Stellar as high as $0.23, considering that Ali Martinez, a popular on-chain analyst on X, estimated that the cryptocurrency’s next rally might amount to a high 25%.
Still, an upswing is far from guaranteed. Indeed, the $0.183 resistance level demonstrated its strength late on March 25 and early on March 26 as XLM climbed above $0.18 but failed to breach it, leading to a correction to the press time price of $0.17.
XLM price one-week chart. Source: FinboldDo Bitcoin and XRP hold the keys to XLM’s next move?
Elsewhere, Stellar’s latest cryptocurrency market moves demonstrated once again the digital asset’s link to XRP and, in turn, XRP’s own link to the traditional market leader: Bitcoin (BTC).
Almost simultaneously, BTC soared above $71,000 but then rejected a further breakout and declined to its press time price of $69.513. For its part, XRP rose to $1.41 and slightly beyond but then fell to the token’s March 26 price of $1.37.
XRP and Bitcoin one-week price chart showing similarities in performance between the two on March 25 and 26, but also in relation to XLM. Source: FinboldUnder the circumstances, hopeful XLM investors might be wise to look at Bitcoin’s performance in relation to the nearest resistance just above $72,000 and the Ripple-issued token’s at $1.43.
Indeed, should the world’s premier cryptocurrency cross above the threshold and then lead to XRP breaching its own critical level, the forecasted Stellar rally toward $0.23 would appear highly likely.
Why XLM might not rally even if BTC and XRP soar
Lastly, it is noteworthy that XLM is trading higher relative to its prices in recent months than either Bitcoin or XRP, leaving the possibility that it would fail to rally no matter what the two leading cryptocurrencies do.
The relative strength index (RSI) readings for the three digital assets also confirm the possibility. While all three are in the ‘neutral’ zone – indicating they are neither oversold nor overbought – XRP’s stands at approximately 49, BTC’s at 53, and Stellar’s at a far higher 62.
Featured image via Shutterstock
Source: https://finbold.com/xrp-rival-poised-for-massive-crypto-market-rally-should-it-reclaim-this-level/
