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XRP And XLM Price Correlation Persists, Ripple CTO Explains Why

XRP and Stellar (XLM) are two cryptocurrencies that have been constantly compared in terms of price growth and development. Both digital assets are dedicated to facilitating cross-border transactions. 

Given their considerable similarities, the Chief Technology Officer (CTO) of Ripple, David Schwartz has attempted to uncover the factors contributing to the persistent price correlations between the cryptocurrencies. 

Ripple CTO Explores XRP And XLM Price Trends

Schwartz has recently taken to X (formerly Twitter) to share a chart illustrating a strong correlation in the price movements and patterns between XRP and XLM tokens. In response to an X user who expressed curiosity regarding the similar price trends between the two cryptocurrencies, Schwartz explained the distinct reasons behind XRP and XLM’s unique price movements. 

The Ripple CTO acknowledged that he lacked an accurate explanation for the price correlations between XRP and XLM. However, he provided two major factors that could be influencing the price trends. 

Schwartz revealed that comparable market forces that regulate various cryptocurrencies also control XRP and XLM. He further stated that most investors and crypto enthusiasts often place XRP and XLM within the same category due to the cryptocurrencies’ historical connection.

 As a result, a significant number of people simultaneously engage in buying and selling XRP and XLM causing the cryptocurrencies to have similar price movements. 

Concluding his analysis, Schwartz stated that he believed there were no market manipulations or external “evil forces” making these cryptocurrencies display similar price trends. 

XRP price chart from Tradingview.com (XLM Ripple CTO)

Latest Developments For Both Assets

XRP and XLM are one of the major cryptocurrencies that have gained significant attention, often seen as the leading contenders for cross-border payments and mainstream adoption. 

While these two cryptocurrencies tend to display similar price tracks, they have been experiencing vastly different developments in their respective markets and ecosystems. 

XRP recently gained regulatory clarity after successfully gaining a victory in its ongoing legal battle with the United States Securities and Exchange Commission (SEC). Despite speculations suggesting that XLM might be the SEC’s next target due to its striking similarities with XRP, the cryptocurrency has not encountered similar legal issues in the US as Ripple. 

Following XRP’s partial legal success, the price of XRP surged considerably. While XLM followed behind increasing by almost 90% but retraced some of the accumulated gains later. 

In terms of expansion, XRP has achieved multiple milestones and has gained approvals in several regions including Dubai. The cryptocurrency is positioned to gain from Ripple’s potential integration into trillion-dollar markets and industries.

On the other hand, Stellar (XLM) is improving its ecosystem by integrating a new testnet upgrade, Protocol 20. The cryptocurrency is also actively seeking new partnerships with banks to expand its reach and utility.

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Stunning Correlation Emerges Between XRP And XLM, What’s Going On?

On Monday, news quickly spread after a BlackRock XRP ETF filing popped up on the Delaware Corp. Commission website. The filing has since been claimed to be false. But the damage was already done as the token’s price surged quickly before reversing.

One interesting development from this event though was a curious correlation that emerged between the XRP price and the XLM price at the time. While the news was localized to XRP, XLM had surged just as much, emerging with a stunning correlation between the two.

XRP And XLM Correlation Balloons

In the wake of the rumored BlackRock XRP ETF filing pumping the token’s price, one enthusiast has noticed a significant correlation between XRP and XLM. Crypto analyst and educator Blockchain Backer took to X (formerly Twitter) to reveal what he terms as one of the “most bizarre” moves.

The chart clearly shows the XLM price surging just as the BlackRock news broke with a straight green candle. Likewise, when the news was debunked and the XRP price began to fall, so did the XLM price, in an eerily similar fashion.

In another post, Blockchain Backer revealed that XLM had followed XRP’s move in the 2-second timeframe. A chart shared with this post showed XRP’s movement and XLM’s movement on the same chart and the moves happened at almost the same time, as shown below:

XRP XLM BlackRock

“The fake news was literally XRP specific, and would impact XRP only, not XLM. If anything, you’d expect XLM sell off like the rest of the market. Instead, it mirrors. Why?” the analyst wondered.

XLM price chart from Tradingview.com (XRP)

Running A Similar Race

XRP and XLM have always seemed to run in the same circles and the correlation in their price movements has been a testament to that. One X user, in response to Blockchain Backer’s post, reasoned that the correlation was because both digital assets actually “share the same holders.”

One crypto analyst who has also closely tied the performance of XLM to that of XRP is Crypto Bilbuwoo. One of their long-running analysis includes both digital assets which the analyst expects to move toward new all-time highs in the same fashion.

In an October 15 post, Crypto Bilbuwoo posited that “The chart shows that 1.618 Fibonacci ratio(XLM: 6.5$, XRP: 26~33$) will be completed at the end of December.” The last time this happened was back in 2017 and the analyst expects a repeat of that trend, saying there would be a 6,500% surge for both assets.

Despite this correlation, Blockchain Backer still finds Monday’s simultaneous pump strange as he believes “those same holders would have dumped XLM for XRP. Not fomo bought XLM on that news story.”

However, as another X user explains, “Not if they believe XLM and XRP are brother and sister. There are some influencers peddling this for years. Doesn’t make logical sense but does with that narrative. XLM would be next!”

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Stellar To Release Protocol 20 Testnet Upgrade, Will XLM Rally?

On September 20, Stellar, a blockchain platform designed to facilitate fast and low-cost cross-border transactions using its native currency, XLM, will release the testnet upgrade of Protocol 20. With this launch, the protocol prepares for the eventual mainnet activation of the Soroban smart contracts platform.

Stellar Prepares For Protocol 20 And Smart Contracts

According to a document on September 18, the testnet upgrade aims to release candidate versions of Stellar Core and Horizon. Stellar is a blockchain network and relies on a network of nodes for transaction validation and to ensure the network is secure. Validators running are kept in sync using the Stellar Core since it acts as the backbone of the entire network, safeguarding the integrity of the blockchain. 

Stellar Horizon is an interface that simplifies interaction between applications and developers with the mainnet through APIs. By eliminating the complexities of interacting with the blockchain, Horizon makes it easier for users to deploy applications. 

Once the stable version is released, Validators will vote on the day when tested upgrades are integrated into the mainnet. The blockchain developer has acknowledged that the Protocol 20 upgrade will bring about new settings, which will require more discussion and adjustments through voting. The Stellar Network will provide a timeline for implementing these changes before rolling them out on the mainnet.

Soroban And The $100 Million Incentive

Stellar describes Soroban as a smart contracts platform designed for “scale and sensibility” and “integrates with and works alongside the existing Stellar blockchain.” The portal is currently being tested in Stellar’s testnet, Futurenet. 

Stellar claims that some of the network’s core features, such as multi-core scaling and an optimized fee model, make their smart contracts superior since all the “pesky serialization loops” have been eliminated. Unlike Ethereum layer-2 platforms like Arbitrum or Polygon, which operate separately, Soroban will fully integrate with Stellar and remain open source. 

The Stellar Development Foundation rolled out a $100 million Adoption Fund to incentivize Soroban adoption. This program, they explained, is an “umbrella for many programs that support all levels of Soroban adoption, some of which have launched and some of which have yet to launch.”

Stellar price on September 19| Source: XLMUSDT on Binance, TradingView

XLM prices are firm and have been one of the top-performing assets in the past three months. To illustrate, the coin surged from $0.08 in June and more than doubled, reaching $0.18 in late July.

However, the coin has since retraced, dumping by around 40%. However, the uptrend remains looking at the candlestick arrangement in the daily chart. Whether this upgrade will support XLM is yet to be determined.

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Stellar (XLM) Holds Past Week Gains As Bear Taking Control Of The Market

All eyes are on Stellar (XLM) as it breaches the $0.12 resistance despite the massive onslaught in the crypto market. The token managed to hold its past week’s gains while Bitcoin and other top coins maintained consistent bearish momentum. 

Stellar’s current price reflects the growing demand and interest in its payment solution, which is a plausible reason behind its strength. Moreover, excitement is high among XLM investors as the Stellar network prepares for a game-chaining announcement on Tuesday. 

XLM Soars Amid Heightened Speculation In The Stellar Ecosystem

XLM has been bullish since September 2 following Stellar.org’s announcement that “something cool is coming” to the network in 10 days. Following this announcement, XLM’s price increased by 10%, climbing from $0.1135 to $0.126.

Related Reading: Solana (SOL) Price Plunges On FTX Rumors, Buy Or Sell Now?

It maintained the momentum, though with a few dips, reaching $0.134 on September 10. This price move marked a nearly 20% increase from the month low of $0.1117 recorded on August 17.

Furthermore, Stellar Network continued to tease the community with the countdown to the mysterious announcement, as a September 7 tweet also teased that change is underway as the upcoming brand will introduce Stellar to the real world.

The Stellar community is abuzz with anticipation as enthusiasts await the unraveling of the mystery. Some community members speculate that the upcoming announcement could be related to a partnership with Apple. 

In a recent report, Stellar dominated all layer-1 networks in tokenized treasuries by market cap, surpassing Ethereum and Polygon. The August 23 tweet shows that Stellar recorded a tokenized treasury market cap of $304 million. Ethereum, on the other hand, recorded a Treasury market cap of $291 million, while Polygon followed with $24 million.

This report presents Stellar as a leading real-world asset tokenization network, a plausible reason behind XLM’s price increase. 

XLMUSD price chart

Price Outlook: XLM Slips Off $0.13. Will It Rebound?

Over the past 30 days, Stellar’s XLM embodied the resilience lacking in the broader crypto market. While most coins surrendered all past gains, XLM held on, bucking negative market sentiments and soaring new highs.

However, the rally has stalled, and the token currently holds over 3% price decline in the last 24 hours. But it still retains 1.78% gains in the last seven days. 

Stellar has slipped off the newfound support at $0.134 and now trades at $0.1272. This downslide suggests two things. Firstly, the hype around the mysterious announcement must have dwindled. Secondly, XLM could have succumbed to the bearish pressure present in the broader crypto market.

Nonetheless, XLM is in a critical conjecture, as the outcome of the next 24 hours will determine its price trajectory. If the announcement is bullish enough, XLM could witness a positive momentum shift with a massive upswing above the $1.3 price.

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XLM Surges With 10% Rally – Can The Recovery Hold Its Ground?

Stellar (XLM) has experienced a robust resurgence, bouncing off a crucial support level at $0.11. Chart indicators are pointing towards a promising outlook for bullish investors, marking a significant shift in momentum since mid-August. This second rebound from the same support level underscores the formidable strength exhibited by bulls, hinting at the potential for further gains.

A price analysis notes that the $0.11 support level has emerged as a steadfast defense line for XLM enthusiasts. Recent price action has illustrated that bears would need to work diligently to flip this level in their favor, extending the bearish momentum. 

However, the bulls have displayed unwavering determination, as evidenced by the latest retest of the support on Sept. 4, which triggered a notable price pump.

As of the latest data, XLM is trading at $0.124 according to CoinGecko, reflecting a 2% rally over the past 24 hours and an impressive 10% surge in the last seven days. These gains are indicative of growing optimism among XLM investors.

XLM Chart Indicators Favor Bulls

The on-chain indicators are aligning with the bullish sentiment surrounding XLM. The Relative Strength Index (RSI) hovers around the neutral 50 mark, suggesting a healthy demand for XLM.

Additionally, the Chaikin Money Flow (CMF) stands at +0.10, indicating an influx of capital into XLM. This influx is typically a bullish sign, pointing towards the growing confidence among investors in the cryptocurrency.

Despite the resurging optimism, XLM faces a battleground in the long/short ratio on exchanges. The tight margins indicate that sellers are actively trying to thwart the bullish rally.

While long positions are inching closer to the critical 50% flip point of the long/short ratio, sellers currently maintain the upper hand, exerting pressure on XLM’s upward trajectory.

What Lies Ahead For XLM?

With the $0.11 support level proving to be a formidable stronghold for bulls and chart indicators hinting at further gains, XLM enthusiasts are eyeing a target range of $0.17 to $0.19, aiming to revisit the highs last seen in July.

The crypto market remains dynamic and volatile, so investors should remain vigilant and stay tuned for developments that could impact XLM’s price trajectory.

XLM has staged an impressive rebound, bolstered by strong support and positive chart indicators. While challenges persist in the form of bearish resistance in the long/short ratio, the bullish momentum remains intact, with investors setting their sights on recapturing the July highs. The cryptocurrency market continues to evolve, and XLM’s resurgence is a testament to its resilience in the face of market fluctuations.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Stellar

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Stellar Tough Spot: Will XLM Prices See A Dip Amid Mid-Range Struggles?

Stellar (XLM) investors were in for a surprise over the weekend as the cryptocurrency staged a remarkable comeback, defying the prevailing bearish trend across the crypto market. 

The token’s price surged by 7.3% in the past 24 hours and recorded a 2.3% increase over the past week, now resting at $0.122461 according to CoinGecko.

While cryptocurrency enthusiasts are rejoicing over the impressive price performance, the question that lingers on everyone’s mind is: why did Stellar’s price jump during the weekend? Two plausible explanations have emerged.

XLM Surge Potential Triggers

One likely catalyst for the sudden Stellar surge is the tantalizing tease from its developers regarding an important announcement scheduled for next week. This cryptic hint has stirred anticipation and speculation in the crypto community, with investors eagerly awaiting what could be a game-changing revelation for Stellar.

Another factor that might have contributed to the bullish sentiment around Stellar is the upcoming Meridian event set to be hosted by the blockchain platform later this month in Spain. 

Meridian, known as Stellar’s flagship annual event, is expected to bring together a multitude of influential speakers from the blockchain and cryptocurrency space. Their speeches and insights have the potential to significantly influence market dynamics, possibly explaining the increased demand for XLM.

Technical Analysis Indicates Potential Challenges Ahead

Despite the recent surge, some technical indicators suggest potential challenges for Stellar. XLM has consistently closed daily sessions below the mid-range price of $0.1150, signaling increasing seller leverage. A weekly session closure below this level could confirm the sellers’ advancement, potentially pushing XLM toward the range low of approximately $0.1000.

However, this range low is not without its silver lining. It coincides with a daily bullish Order Book (OB) ranging from $0.0953 to $0.0986, creating a strong support zone for the cryptocurrency. Investors will be closely monitoring whether XLM can maintain its foothold in this zone or if further bearish pressure awaits.

In the past few days, funding rates in the crypto market have been predominantly negative, underscoring the prevailing bearish bias. This bearish sentiment is further supported by the declining Open Interest (OI) rates witnessed in August and early September.

The decrease in OI reflects reduced demand for XLM during this period, suggesting that investors remain cautious in the face of market uncertainties.

As the crypto community eagerly anticipates the forthcoming news from Stellar’s developers and the Meridian event, XLM’s price trajectory remains uncertain.

Traders and investors are advised to exercise caution and closely monitor the evolving market dynamics in the coming days, as these developments could play a pivotal role in determining Stellar’s future price movements.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from MEXC Blog

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Stellar (XLM) Still Contemplating To Join The Green Part, Will Price Give In?

  • XLM price shows could be ready for a major boost as the price remains bullish with good volume and strength.
  • XLM trades above support as the price aims to continue its trend movement as the price keeps holding above 8 and 20-day EMA.
  • The price of XLM eyes a rally to $0.14 as the price breaks out of an ascending triangle with more buy orders. 

The price of Stellar (XLM) has continued to show its strength as price trends with a key breakout from a range-bound movement against tether (USDT). With the crypto market cap bouncing from its weekly low as the market continued to look promising, the price of Stellar (XLM) was not left out as the price broke out of its long-range, with price trending to a higher height with eyes set for a possible $0.14 target. (Data from Binance)

Stellar (XLM) Price Analysis On The Weekly Chart

The crypto market received the relief, as most crypto altcoins expected. However, despite the recent price surge in most crypto assets, some altcoins have remained range-bound.

One project that has shown great signs of a recovery bounce but keeps stalling in price is XLM as the price continues to range as it aims a rally to a height of $0.14.

The price of XLM saw its price rejected to a weekly low of $0.1, with XLM showing so much strength holding off price sell-off as the price bounced to a region of $0.13.  

Weekly resistance for the price of XLM – $0.14.

Weekly support for the price of XLM – $0.1.

Price Analysis Of XLM On The Daily (1D) Chart
Daily XLM Price Chart | Source: XLMUSDT On Tradingview.com

On the daily timeframe, the price of XLM continues to show strength as it pulls some gains despite the market appearing to have stalled in price movement; after hitting a daily low of $0.1, the price of XLM rallied to a high of $0.13 before being rejected into an ascending triangle as it struggled to break out with price breaking out and looking more bullish for a rally.

The price of XLM breaking out signals more bullish trends to a high of $0.14 and a possible rally to $0.16. The price of XLM holding 8 and 20-day Exponential Moving Average (EMA) is a good sign for price growth. 

The prices at $0.12 and $0.11 correspond to the 8 and 20-day EMA values. 

XLM’s price has a support level at 8, and 20 EMA, a break below this level would mean a retest of $1 or even lower.

The Relative Strength Index (RSI) for XLM shows increasing buy orders as the value is above the 50 mark area daily.

Daily resistance for the XLM price – $0.14.

Daily support for the XLM price – $0.1.

Featured Image From Cryptoholics, Charts From Tradingview