XLM and ATOM: Altcoins Analysis for July 26, 2023
The BTC chart hasn't seen any major changes since our last analysis. Here's a fresh take on the market situation for cryptocurrencies Stellar (XLM) and Cosmos (ATOM).
Stellar (XLM)
Often referred to as XRP's twin, XLM positions itself as a currency for global transactions, largely targeting the banking sector. Consequently, when Ripple triumphed in its lawsuit against the SEC, XLM also experienced a dramatic increase, due to its high correlation with XRP.
XLM witnessed a momentary 100% spike on July 13. The currency is currently trading between the recently formed support zone of $0.125-$0.135 and the resistance zone of $0.163-$0.180. If BTC continues its upward trend, Stellar could potentially surpass its annual high, breaking the $0.195 mark.
However, Bitcoin's fluctuations also impact Stellar. If Bitcoin continues its downward trajectory, Stellar could test the buyer's threshold at $0.113 and the support zone between $0.089 and $0.100, from where its significant surge originally started.
XLM chart on the H3 timeframe
Cosmos (ATOM)
ATOM is currently trading within a strong support zone of $8.73-$9.07, which it's been testing for the fifth time in one and a half months. If this zone fails to keep the price aloft, and the Bitcoin correction persists, ATOM could test resistance levels at $8.5, $8.26, and the extensive range of $7.73-$8.08.
To escape its prevailing downtrend, ATOM needs to navigate past areas dense with sell orders in the ranges of $9.42-$9.67 and $10.26-$10.63. After that, it must establish a foothold above the $11 threshold. Only under these circumstances will the overarching downtrend transition into an upward trajectory.
ATOM chart on the H4 timeframe
The U.S. Federal Reserve will release its decision on interest rates today at 6:00 PM (UTC). It’s advisable to refrain from trading or substantially reduce the risk of your trades due to the potential spike in volatility.
Check out Gagarin News for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
This analysis was informed by the following educational materials and articles from Gagarin News:
