Stellar Lumens and Ripple have pulled back this week as the ongoing crypto market crash continued. XRP price dropped to $3.05 on Thursday, down from the year-to-date high of $3.66.
XLM, its smaller “cousin,” has moved into a bear market after falling by over 23% from its highest level last week. The two declined as the recent momentum waned and as traders booked profits ahead of the Federal Reserve decision, US nonfarm payrolls (NFP) data, and the August 1 trade deadline.
This article conducts a technical analysis of Stellar and Ripple, explaining whether they will bounce back in August and potential targets.
XRP Price Technical Analysis
The daily timeframe shows that the ongoing XRP price pullback is not by coincidence. Instead, it is part of the formation of one of the most common bullish continuation patterns known as a cup-and-handle.
This pattern is made up of two parts, as the name suggests. The first part is a U-shaped section resembling a cup or a bowl. This section formed between November last year and July, with its lowest point at $1.6173 and its upper point at $3.3955. The difference between these two is about 52%.
The coin is now forming the handle section, which explains why it has pulled back in the past few days. XRP remains above the 50-day and 100-day moving averages, supporting the bullish thesis.
Therefore, the token is likely to experience a strong bullish breakout in August, with a target of $5.1783. This target is established by measuring 52% points above the upper side of the cup.
The bullish XRP price forecast will become invalid if it crashes below the support at $2.6470, its highest swing on May 14 this year.
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XLM Price Prediction
The daily timeframe reveals that the XLM token price has formed bullish patterns, indicating a strong surge. For example, it formed a double-bottom pattern at $0.2180 and a neckline at $0.33.
It then formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. This is one of the most bullish patterns in the market.
Stellar Lumens’ price is now forming a bullish flag pattern, which is made up of a vertical line resembling a flagpole and a flag-like pattern. Therefore, the combination of these patterns points to an eventual comeback in August.
The price target in this case is established by measuring the height of the flagpole, which is 58% and then the same distance from the potential breakout point. In this case, the token will likely surge to $0.6765 in August.
Summary
XLM and XRP prices have pulled back in the past few days. On the positive side, these pullbacks are part of the formation of highly bullish patterns. In XRP’s case, it is part of the handle section of the cup-and-handle, while XLM is forming a bullish flag. These patterns point to an eventual surge in August.
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