Cryptocurrency: DAILY NOTION: Can XLM/USD Continue Marching Onwards? Next Mover: U.S. Georgia Runoff Elections

Chris_447

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XLM/USD is experiencing a beautiful ascent in the early days of 2021. Over the past 24 hours alone, it has gained 40% after a big breakout above $0.16. At the time of writing, the price is at $0.2163. Current Relative Strength Index (RSI) is in overbought territory at 80. The week’s lowest point was at 19 on Monday when the price experienced a sharp dip to $0.1410 before moving on to the week’s low of $0.1309.

Although the price has been steadily moving upwards since then, analyst Lorenzo Stroe from FX Street predicts that a correction is now due. The TD Sequential Indicator has shown a green ‘8’ candle, which is typically followed by a sell signal.

An interesting point to note is how data from monitoring resource, The Tie, is showing that long-term sentiment for XLM/USD is more favourable than XRP/USD. This is no surprise, given the battle that Ripple is currently facing with the U.S. Securities Exchange Commission. This is also supported by the hike in XLM’s social volume over these past few days, a trend that was last seen way back in February 2019.

Would the Fear of Missing Out (FOMO) open the way for a correction, or can the bulls hold the fort?
At the time of writing, traders are waiting for the final out of U.S. Georgia runoff elections. The result of this election is crucial as it would determine who holds the legislative power in the U.S. and to a certain extent, the tone of Joe Biden’s term as the next U.S. president. The result of this election would also determine if traces of President Trump would still be left in the White House, even after he has left it.

The latest Institute for Supply Management (ISM) Manufacturing Index came in at 60.7 against an expected result of 56.7. This is the highest result since August 2018. It will be interesting to see the results of the nonfarm payrolls due this Friday.

XLM/USD (as of Jan 6, 2021, 9.50 a.m., GMT +8) - $0.2163
Kindly refer to this link for the price chart:
FOLLOWME Global Team
 

Chris_447

Followme Representative
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26
Cryptocurrency: DAILY NOTION: The BTC/USD Bulls Waiting For The Next Catalyst, Next Mover: Biden Administration Policies

The BTC/USD moved up to a high of $37,712. 37 yesterday but has since dipped to $36,294.01. At present time, the price is at $36,465.33 with a Relative Strength Index of 43.

Analyst Anil Panchal from FX Street believes that an upward movement is possible, given the upbeat Moving Average Convergence Divergence (MACD) and RSI. He suggests that buyers should watch the triangle’s resistance at $38,325 for entry before targeting the latest record top near $42,000.
This view is concurred by analyst Naeem Aslam from Investing.com, who also believes that as consolidation happens with BTC/USD, the bulls are simply waiting for a new catalyst before hitting a new all-time high. He opines that as long as BTC/USD’s price trade above the 50, 100, and 200-day SMA, it indicates that the bulls are in control.

While BTC/USD and most of the altcoins have enjoyed a good run in the wake of the pandemic, would this change if Janet Yellen takes her position as the U.S Treasury Secretary? She has long since been vocal about her dismal view of cryptocurrency, and her latest remark at her Senate confirmation hearing yesterday about cryptocurrency being used for illicit financing did not come as a surprise to many.

Will this sentiment be reflected in her term, being Joe Biden’s nominee as U.S. Treasury Secretary?
This also leads to a more important question: how will the new Biden administration impact cryptocurrencies? In the nearer term, the first days of Joe Biden in the office could hinder if BTC/USD bulls as the Biden administration looks keen to tackle the economy with a robust stimulus package. A stronger risk-on sentiment will not be good news for BTC/USD.

BTC/USD (as of Jan 20, 2021, 10.20 a.m., GMT +8) - $36,465.33

FOLLOWME BTC/USD User Sentiment (as of Jan 20, 2021 at 10.40 a.m.)

Short – 65.56%
Long – 34.44%

FOLLOWME Global Team
 
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