- XRP continues its bullish breakout, climbing 16.8% after breaking a pennant pattern and now targeting $3 based on Fibonacci extensions.
- Cardano has surged past the $1 mark, currently trading at $1.22 with bullish momentum targeting $2.
The altcoin market seems to be taking a pause from historic runs in the past 30 days as trader enthusiasm diminishes. Recently, Ripple’s XRP, Cardano (ADA), and Stellar (XLM) posted impressive monthly gains of 416%, 473%, and 263%, respectively. However, analysts expect that the rally is far from over.
Blockchain analytics firm Santiment commented on this, “With altcoins not slowing down on their historic runs yet, the euphoria from a week ago is showing trader fatigue.” They noted that “the silence toward these top caps should be considered an encouraging sign that FOMO won’t be interfering with any further climbs.”
XRP Price Analysis
Ripple’s XRP has been out in front of performers, reaching its price with a bullish breakout over the resistance level of $1.63. In today’s trade, XRP’s price stands at $2.57 with an intraday profit of 6.16%, and the market capitalization has risen to $146.57 billion, displacing Tether and ranking third on CoinMarketCap.
The rally came after XRP broke out of a pennant pattern on November 27, driving a 16.8% surge and turning prior resistance into support. Analysts suggest a further rally may be on the horizon, with the Fibonacci extension tool indicating a potential climb to $3, a 17% gain from current levels. Meanwhile, a longer-term projection places XRP at $2.40 by the end of 2024.
However, XRP price’s stellar 416% monthly surge has driven its Relative Strength Index to 88, meaning that it is in an overbought condition. The latter would indicate a short-term pullback to enable buyers to reposition before another upsurge.
The derivatives market reflects significant interest, with Futures Open Interest skyrocketing from $681 million to $3.86 billion—a 467% increase. Additionally, XRP’s funding rate has risen to 0.04%, indicating bullish sentiment as traders maintain long positions. As reported by CNF, market analysts are already predicting $5 for XRP by 2025.
XLM Price Analysis
Stellar (XLM), trading at $0.55, is still sporting a bullish pennant formation. Technical formations that appear as continuation patterns may offer an easy route to a breakout when they have significant volumes accompanying them. The asset has seen its price stay above all the critical levels, from its 50-week Exponential Moving Averages (EMAs) to its 200-week EMAs and the psychological $0.50 mark.
Despite a 15% decline from the peak reached in November, XLM has strong market fundamentals. Its MVRV ratio is 2.7, which is above this year’s lows but far below the peak of 6 in 2021. If the bullish pennant is confirmed, XLM may resume its upward trajectory and test previous highs while even moving further to $1, per the CNF report.
ADA Price Analysis
Cardano has been another star performer recently, breaking the $1 mark and attracting significant investor interest. Currently trading at $1.22, ADA experienced a 10% increase over the past 24 hours. Today, Cardano climbed from a low of $1.10 to a high of $1.32, reported CNF.
Bullish momentum puts ADA near critical resistance at $1.30. A break above this level could send the crypto all the way up to $2, but the curveballs could follow immediately. ADA’s RSI is already up at 81, so the overbought could trigger a correction.
Thus, analysts continue to express skepticism regarding the extremely speculative reports indicating a 230% rally by December. A fall below the $1.10 support level would indicate bearish momentum. Further declines may push the price down to $0.88 for a 20% correction from the current levels.
