XRP, XLM, TRX Analysis — Will Altcoin Price Rally Continue in December 2024

The altcoin market has entered a correction stage after rallying by over 55% in November. As of Nov. 28, the market capitalization of non-Bitcoin tokens was around $1.34 trillion, down about 5% from the monthly peak of $1.4 trillion.

XRP (XRP), Stellar (XLM), and Tron (TRX) are among the worst performing altcoins during the correction stage. They have fallen 9.85%, 25.50%, and 12.15% from their respective November peaks.

XRP Technical Analysis

XRP/USD Four-Hour Price Chart: A 40% Rally is Possible By December

XRP/USD has formed a textbook bull pennant pattern on the 4-hour chart, characterized by its consolidation inside a triangle-like range following a sharp price rally.

Diminished trading volumes during the consolidation phase, followed by a breakout attempt, confirm the pattern.

The projected breakout target for this bull pennant is approximately $2, calculated by adding the height of the flagpole to the breakout level near $1.46. Traders should watch for confirmation of the breakout, as invalidation of the pattern could result in a retest of the $1.34 support zone.

XRP/USD is trading above both the 50-period EMA ($1.34) and the 200-period EMA ($0.96), reinforcing its bullish bias. The relative strength index (RSI) hovers near 56, leaving room for further upside before entering overbought territory.

XRP Weekly Price Chart: Ripple Token Breaks Resistance That Caused 40-80% Crash in 2021

XRP/USD has executed a symmetrical triangle breakout on the weekly chart, signaling a long-term bullish reversal. The pattern, formed by converging trendlines since 2018, finally resolved with a decisive breakout above $1, accompanied by surging trading volumes.

In doing so, XRP has jumped above a key technical resistance level at around $1.44, aligning with its 0.382 Fibonacci retracement line. This level was also instrumental in limiting XRP’s price gains in August-November 2021, contributing to 40-80% declines.

With XRP now above it, it is eyeing a further run-up toward its April-June 2021 resistance level of around the $1.84-1.98 area. This level further aligns with XRP’s 0.5 Fib line and the bull pennant target of $2 discussed above.

Stellar (XLM) Technical Analysis

XLM/USD Four-Hour Price Chart: A 30% Rally Next?

Stellar has broken out of a falling wedge pattern on the 4-hour chart.

The wedge, characterized by descending trendlines with a narrowing range, formed after a sharp price rally, indicating a pause in the uptrend. Howver, its breakout above the wedge’s upper trendline indicates a growing bullish bias.

A falling wedge’s price target is measured after adding the maximum distance between the upper and lower trendlines to the breakout point. That puts XLM/USD on the path toward $0.631, up 30% from the current price levels.

XLM/USD Weekly Price Prediction Chart: Can Stellar Break Six-year Old Giant Range?

Stellar (XLM) is challenging the upper boundary of a six-year descending range.

The range, defined by a resistance trendline originating from XLM’s January 2018 all-time high near $0.80, has historically triggered sharp sell-offs upon retests. In mid-2018 and early 2021, rejections at the same descending trendline led to price declines of 97.6% and 91%, respectively.

Currently trading around $0.50, XLM is testing this critical level for the third time since 2018. A successful breakout would mark a major bullish reversal, with the next potential target aligning with the 1.618 Fibonacci extension level near $1.24.

However, a failure to breach this level could see XLM retreat sharply toward the lower range boundary near $0.10 in 2025.

Tron (TRX) Technical Analysis

TRX/USD Four-Hour Price Chart: Price Can Rise By Up To 15%

TRX/USD is testing the upper boundary of a falling wedge pattern on the 4-hour chart, hinting at a potential breakout. The price is consolidating just above its 50-period EMA ($0.20) while holding above the 200-period EMA ($0.18), both of which are acting as support levels.

A confirmed breakout above the wedge resistance could trigger a bullish continuation, targeting the immediate resistance levels at $0.213 and $0.231. These targets are derived from the height of the wedge projected from the breakout point.

Failure to break out could see TRX retest support around $0.19, with the 200-period EMA acting as a key defensive zone. The RSI remains neutral at 49.95, leaving room for movement in either direction.

TRX/USD Weekly Price Chart: Cup-and-Handle Breakout Sees 75% Boom in 2025

TRON (TRX) has successfully broken out of a cup-and-handle pattern on its weekly chart.

Notably, a cup-and-handle pattern forms when the price undergoes a U-shapred recovery followed a period of consolidation. It typically resolves when the price breaks above a common neckline support and, as a rule of technical analysis, rises by as much as the maximum distance between the cup’s trough and the neckline.

Applying the same technical rule on Tron token’s weekly chart brings $0.40 as the potential price target in 2025.

On the downside, the price could see a retest of the breakout level at $0.131 if profit-taking intensifies. Key support levels include the 50-week EMA at $0.13 and the 200-week EMA at $0.09. A confirmed hold above these levels would reinforce the bullish outlook.