The Ripple (XRP) rate may become volatile in March. Ethereum (ETH) may strengthen against Bitcoin. Stacks (STX) will continue to show rapid growth.
February 2023 turned out to be a relatively bullish month for the crypto market. March can pick up the baton from him. The three most interesting currencies in terms of price dynamics in March.
Ripple (XRP): return of volatility
The results of the technical analysis of the daily chart show that the rate of XRP, the native token of the Ripple project, has been trading inside a long-term symmetrical triangle since June 2022. Now the price is approaching the point of convergence of the resistance and support lines of this pattern.
For now, a clean breakout of XRP from this technical pattern seems likely. Because the consolidation has been going on for such a long time, a significant market move can be expected after the breakout.
In the event of a bullish breakout, Ripple could rise to at least $0.43 and possibly as high as $0.52. Meanwhile, a bearish breakout could send the price down to $0.30. Both options are possible as both technical indicators and XRP price action are neutral.
Ethereum (ETH): could put pressure on BTC
Ethereum (ETH) confidently ranks second in the ranking of cryptocurrencies with the largest capitalization, traditionally second only to bitcoin. The ETH/BTC pair is now drawing a bullish structure on the chart for several reasons.
First, ETH has been trading inside a descending parallel channel since October 29th. These channels are usually associated with corrective moves, which means that the price may eventually break out of this pattern bullishly.
Secondly, over the past month, Ethereum has been giving bullish divergence signals (green line). The divergence coincides directly with the channel support line, which enhances its significance. Such a long (more than a month) divergence suggests that it will become a catalyst for the growth of the ETH rate within a month.
Thus, the most likely scenario is the price growth towards at least the channel resistance line by ₿0.077. This bullish prediction will be canceled in the event of a bearish breakout of ETH from the channel. Then the price may drop to the Fibo level of 0.618 by ₿0.063 (white line).
Stacks (STX): Rise Above $1.50
Stacks is a first-level blockchain solution that adapts smart contracts and decentralized applications (dApps) for the Bitcoin (BTC) network, importing them with full functionality. It is noteworthy that in July 2019, the US SEC for the first time in the history of crypto projects approved Blockstack’s application for a token sale in accordance with the established “A +” provision, creating the first such precedent.
Stacks broke into the leaders of growth following the results of the last week. In general, since the beginning of this year, Stacks has strengthened by 275%. Despite such an aggressive and almost parabolic rally, the bulls are likely to remain strong. This is evidenced by both the RSI indicator and wave analysis. Although the index is overbought, it is not giving any bearish divergence signals yet.
The form of growth points to wave 3. Accordingly, a short-term drop in STX is possible, but then a new bullish move should be expected, which should complete the entire bullish structure. If wave 5 is extended, Stacks could reach the $1.55 resistance area, which it has not visited since April 2022.
On the other hand, a wave 1 high (red line) engulfing at $0.33 will reverse this bullish wave analysis and could send the token down to $0.20.
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