Ripple (XRP), Stellar (XLM), and IOTA (IOTA) Price Forecast

Cryptocurrency prices dropped sharply on January 8 as concerns about a 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.

Here is a technical analysis of XRP, XLM, and IOTA prices.

XRP Price Analysis

XRP 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 as it occurred 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. However, one key factor to note is that XRP is still forming a bullish pennant chart pattern, which we covered here.

A bullish pennant is a common bullish chart pattern that consists of a long vertical move followed by a symmetrical triangle pattern. Hence, the decline is likely as XRP attempts to retest the lower side of the triangle pattern.

As such, the coin is likely to maintain its volatility this week and then stage a strong bullish breakout. If this occurs, the initial target to watch will be $2.90, its highest level last year, followed by the psychological point at $3.

There are multiple catalysts for XRP price. Chances of an XRP ETF are rising on Polymarket, Ripple USD (RLUSD) is gaining market share in the stablecoin sector, and the SEC may conclude its legal battle against the firm.

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 pullback occurred after the token formed a shooting star pattern on January 4.

This pattern consists of a small body and a long upper shadow, which is a common bearish reversal signal. Stellar price has moved below the 38.2% Fibonacci Retracement level at $0.4275.

On the positive side, this price action took place after the coin formed a strong bullish breakout as the black falling wedge pattern approached its confluence level.

Another positive is that the coin remained above the Supertrend indicator and the 50-day moving average. Hence, the coin may trade sideways for a while and then continue the uptrend. It may eventually rally and retest last year’s high of $0.6362.

Fundamentally, XLM price will largely follow Ripple’s performance as the two have a common origin.

This is crucial because Stellar’s network faces the key challenge of being underutilized, with its DeFi ecosystem being much smaller 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 prepare for the upcoming Rebased upgrade.

Rebased is a critical component of the network that will introduce key features like staking and a massive boost in transactions per second.

The daily chart shows that the IOTA token bottomed out at $0.2783, forming a double-bottom chart pattern. It recently moved above the neckline at $0.3512, reaching a high of $0.40.

IOTA price remained above the 50-day moving average. It is also forming a cup-and-handle chart pattern.

Therefore, the coin is likely to continue bullish in the next few days. The initial target is $0.42, the upper handle of the cup-and-handle pattern.