Last Sunday, U.Today reported that the price of the popular cryptocurrency XRP is about to plummet. It will be the worst collapse since 2018, when it lost 85% in three months. This time it doesn’t look as dangerous for XRP, but there could be more damage than initially thought as the Stellar token (XLM) is on the same path for its price.
Both Stellar and XRP have always been seen as challengers in the cross-border payments space. They have similar roots; Stellar was co-founded by Jed McCaleb, who also founded Ripple. They often compete for a piece of the blockchain payments ecosystem and as a result, XLM has been acting as a beta version of XRP in terms of price action.
According to Bollinger Bands, after a big surge in recent weeks, the price of XRP peaked in the upper band and is now more likely to fall back to the median.
For XLM, the story is similar. The high of the upper band was reached and even broken at $0.6374, while the median, represented by the 20-day moving average, extends to $0.21. Something similar happened in 2021. Back then, the price of XLM reached a high of $0.797 and then fell by 48.73% in just one week.
The Stellar token has already seen a 40% drop in the last three weeks and its price is now $0.386. Could we be headed for another 45% drop? If we look at what happened in 2021, the answer is maybe. But nothing is set in stone, and XLM’s price performance will continue to depend largely on broader market trends rather than historical experience.
