Stellar’s XLM price rises as XRP rebounds, but gains may be brief

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As a seasoned researcher with a penchant for deciphering the intricacies of the cryptocurrency market, I find myself constantly amazed by the dance between Stellar (XLM) and its fellow traveler Ripple (XRP). With my fingers perpetually poised over the keyboard, I’ve witnessed the ebb and flow of these two digital assets, their fortunes often mirroring each other due to their shared focus on facilitating money transfers.

On December 17, Stellar Lumens stood out among other cryptocurrencies, maintaining a similar trajectory to Ripple.

The value of Stellar (XLM) increased by 10% today, peaking at $0.4713, which is a 32% jump from its lowest point this month.

As an analyst, I observed a notable rally in the market that aligned with the escalating XRP price surge following the reveal of the RLUSD stablecoin by developers. Ripple Labs anticipates that their newly launched stablecoin will soon attract significant inflows and potentially contend with Tether’s current dominance.

Stellar (XLM) and Ripple (XRP) frequently align in their movements due to their shared emphasis on facilitating transactions, particularly money transfers. Stellar primarily aims to facilitate person-to-person cash transfers, while Ripple concentrates more on serving financial institutions such as banks and money transfer services.

Notably, Ripple and Stellar share a similar history, as Jed McCaleb, who founded Stellar, was initially part of the founding team at Ripple Labs.

Consequently, Stellar tends to increase in value when Ripple is experiencing an uptrend. For instance, Stellar reached its annual peak of $0.1963 in July 2023 as Ripple Labs secured a significant victory in their lawsuit against the Securities and Exchange Commission.

In a similar vein, I found myself observing an approximately 500% surge in XLM price last November, coinciding with Donald Trump’s presidential win. This spike was potentially fueled by speculation that Trump’s victory might prompt the SEC to drop its appeal against Ripple Labs, given Paul Atkins was set to assume his role within the administration.

XLM likewise surged with Bitcoin‘s robust advance, breaking through the significant barrier at $107,000 for the very first time. Typically, altcoins follow suit when Bitcoin performs well.

It’s worth noting that Stellar is exhibiting robust underlying strengths. A notable indication of this can be seen in its latest report where the number of accounts on its network surpassed 9 million. Additionally, the transaction volume within its network skyrocketed to an impressive $4.9 billion.

Stellar price analysis

Today’s graph indicates that the XLM price dipped to around $0.3535 earlier in the month. Subsequently, it developed a ‘hammer’ formation – a commonly recognized sign of reversal, which is marked by a significant lower wick (shadow) and a compact upper wick (body).

Stellar continues to hold its position above both the 50-day and 100-day moving averages. Additionally, it has developed a bullish engulfing chart configuration. This pattern is identified by a large green candle encompassing a preceding red one.

Consequently, it’s expected that the price of Stellar may keep increasing since investors aim for a mid-level resistance at approximately $0.50, which translates to around a 12% hike from its current value.

The risk, however, is that the coin may have formed a bearish flag pattern, which may lead to more downside. Such a move would see it retest the support at $0.3535.

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2024-12-17 17:56