February 4, 2023

Bitcoin Facing Competition – Hello XLM

Bitcoin Facing Competition – Hello XLM

It seems that Bitcoin is facing more and more competition, all around new faces are streaming into the playground and the opposition for the king of recess is steep. However, that doesn’t mean we should count Bitcoin out, after all, no king goes down without a fight, but it does mean that we ought to take note of the strides that others are making, especially in the case of Stellar (XLM).

The Pattern Emerges

Stellar, or as it is more commonly known as XLM, is not a clear-cut choice for top spot at first glance, this is mainly due to the fact that over the month of April it lost a large proportion of the headway that it had gained. However, when the market is viewed holistically a pattern of note emerges from the trading reports for both Bitcoin/XLM and USD/XLM across the markets for the last few months.

The pattern that has emerged is one of continuously minimizing wedges within the market, but perhaps a more interesting insight into the data is that the two charts look as if they are duplicates of each other. At present the pattern for Stellar (XLM) goes as follows, for a few months, there is a significant falling wedge for the trading price, after which the value of XLM jumps and trading continues at this high price for approximately a month.

Following the jump up, the Cryptocurrency enters into a new wedge which is slightly smaller than the first wedge and the cryptocurrency will trade at this price for the period of a few weeks. After this period, XLM then exits out of this wedge to begin trading at a new price that is higher than the previous phases for a few weeks or more, and then will enter into another wedge but only for a couple of days this time. It is highly likely that this will then be followed by another period of high-value trading.

Insights Gleaned From The Pattern

Stellar (XLM) is performing rather well in comparison to Bitcoin, it is up 4% and this is quite an achievement considering it is the only one out of the top twenty cryptocurrencies to manage this feat. Looking at the indicators, the RSI for Stellar (XLM) looks as if it is fast approaching oversold levels and therefore, the market has already begun to readjust itself accordingly.

One insight for XLM is that the movements within this Cryptocurrency’s individual market act as a likely foreshadowing to the movements of the crypto market as a whole. For example, at the beginning of the year, it traded at $1 for the month of Jan but then dropped down to $0.2 all of a sudden, mirroring the recent movements within the crypto markets.

Recently, analysts have become to believe that a sudden high can be expected as the wedges have begun to shrink in time length, which could mean that pretty soon there will be a sudden growth in the market pretty soon. However, knowing that a rush will be soon is not the same as knowing the exact date of the rush, nevertheless, it seems XLM is set to be popular kid on the block for a while.

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