Cryptocurrency prices suffered a big reversal as concerns about a highly hawkish Federal Reserve led to a sell-off of risky assets. Bitcoin price plunged from this week’s high of $102,000 to below $97,000, while the crypto fear and greed index dropped to the neutral zone of 57. This article provides a forecast of top cryptocurrencies like Ripple (XRP), Stellar (XLM), and IOTA (IOTA).
XRP Price Prediction
Ripple price dropped sharply in the overnight session, moving from this week’s high of $2.51 to a low of $2.30. This decline was important since it happened after the coin retested the upper side of the descending trendline that connects the highest swings since December 3.
XRP price moved back to the 23.6% Fibonacci Retracement level. An important factor is that it is still forming a bullish pennant chart pattern, which we covered here.
A bullish pennant is a popular positive chart pattern made up of a long vertical line followed by a symmetrical triangle pattern. Therefore, the decline is likely because Ripple wants to retest the lower side of the triangle pattern.
As such, there are odds that the coin will maintain its volatility this week and then stage a strong bullish breakout. If this happens, the initial target to watch will be $2.90, its highest level last year, followed by the psychological point at $3.
XRP price has numerous catalysts. Odds of an XRP ETF are rising on Polymarket, Ripple USD (RLUSD) is gaining market share in the stablecoin industry, and the SEC may end its lawfare against the company.
XLM Price Forecast
The XLM token price retreated sharply in the overnight session, reaching a low of $0.4210, its lowest swing since January 1. This retreat happened after the token formed a shooting star pattern on January 4. This pattern comprises a small body and a long upper shadow, a popular bearish reversal signal.
The stellar price has moved below the 38.2% Fibonacci Retracement point at $0.4275. On the positive side, this price action occurred after the coin formed a strong bullish breakout as the black falling wedge pattern neared its confluence level.
The other positive is that it remains above the Supertrend indicator and the 50-day moving average. Therefore, the coin may go through volatility for a while and then resume the uptrend. It may eventually jump and retest last year’s high of $0.6362.
Fundamentally, XLM price will mostly track Ripple’s performance because the two have a common origin. That is important because Stellar’s network faces the key challenge of underutilization, with its DeFi ecosystem being much lower than other newer networks like Base and Sui.
IOTA price analysis
The IOTA token has been highly volatile in the past few weeks as investors focus on the upcoming Rebased upgrade. Rebased is a major part of the network that will introduce important features like staking and a big boost to the transaction per second.
The daily chart shows that the IOTA token bottomed at $0.2783, forming a double-bottom chart pattern. It recently moved above the neckline at $0.3512, reaching a high of $0.40.
The price of IOTA remained above the 50-day moving average. It is also forming a cup-and-handle chart pattern. Therefore, the coin will probably have a bullish breakout in the next few days. The initial target is $0.42, the upper side of the cup-and-handle pattern.
