Cardano (ADA) and Stellar (XLM); The price movements in the cryptocurrency market in no way resemble the price movements in stocks and bonds. The industry has been one of the most volatile asset class in recent times making it harder to speculate on future price movements. The behavior of investors however rarely changes and given that the historical prices reflect all available information, future price fluctuations can be predicted to an extent. On this technical analysis issue, we will focus on two of the 20 largest cryptocurrencies currently in the crypto market.
Cardano (ADA) Technical Analysis ̶ May 5, 2018
Looking at the 4-hour price movements of ADA/BTC pair, the ADA coin is approaching a strong support level at 0.00003071 BTC on the 7 day exponential moving average (EMA). The price of ADA has remained relatively stable in the last one week. ADA maintained a major support level of 0.0000346 BTC ($0.355 USD) and with the major resistance level firmly placed at 0.00004018 BTC the bullish momentum on the coin seems to have picked pace. There is a significant intermediate trend line with support at 0.00003071 BTC on hourly charts of the ADA/BTC pair.
Technical analysis chart for ADA/USDT
The relative strength index oscillated between 47% and 42.378% on Saturday May 5, 2018, slightly below the average, showing a relative willingness by investors to sell ADA in the last 4 hours. The overall RSI oscillated between 50.594% and 96.51% in the past 7 days. ADA currently trades at $0.366030 USD This high stat is heavily dependent on the recent developments on Cardano and with the coin looking forward to a listing on Coinbase and other major exchanges soon, the RSI will increase.
The stochastic RSI shows pretty much the same story as seen on the chart. The daily stochastic RSI for the past 4 months shows an upcoming short term bearish run before a strong bullish momentum. The correction stands between 16% and 45%. Every time the price corrects at around 16% a bullish trend follows and the price may hit 0.00005 BTC/XLM. During the last periods of stochastic RSI falling has been followed by a strong bullish momentum in the price. This signals a time to buy ADA as
Stellar Technical Analysis ̶ May 5, 2018
XLM/BTC Technical Analysis
As previous historical charts in the last 4 months show, bulls will rise very soon. As the daily RSI shows, we have been at this point a couple of times in the recent past. The daily RSI oscillates between 50.21% and 55% in the hourly charts, a good sign as low RSI is usually followed by a strong bullish trend.
The strong resistance level on the 7 day moving average looks to have come to a halt as the market prepares for a bullish run on the hourly charts. As the resistance level breaks, XLM may well see it soar above 0.00006 XLM/BTC mark. The coin is currently trading at 0.00004405 BTC ($0.4305 USD), representing a 1% 24 hour loss.