Stellar’s XLM Jumps 15% Two Days After Hitting All-Time Lows Against XRP

Two days after XLM/XRP hit an all-time low of 0.181, the price of Stellar (XLM) has rallied 15% against its main competitor, XRP.

Notably, the XLM/XRP pair surged to an intraday high of 0.2 XRP on March 31, coinciding with the time when XLM and XRP parted ways in the U.S. dollar market. For example, the price of XLM is up more than 11% since March 29, while the price of XRP is down 3%.


Weekly XLM/XRP Price Chart | Source: TradingView

XLM Price Gains 10% Against XRP in April

On a broader time frame, XLM is down 89% from its January 2021 peak of 1,655 XRP. Interestingly, the peak was formed a month after the U.S. Securities and Exchange Commission (SEC) sued Ripple for allegedly selling securities in the form of XRP tokens.

The lawsuit between the SEC and Ripple is now drawing to a close, with legal experts supporting the San Francisco company.

Meanwhile, XLM continued its long-term downtrend against XRP, although a recovery could be seen in April.

On the daily chart, XLM/XRP’s sustained rally began with resistance at a multi-month descending trendline forming a descending channel, as seen in the chart below.


Daily XLM/XRP Price Chart | Source: TradingView

Currently, the pair is targeting the 0.198-0.207 XRP resistance zone as support, reaching 0.22 XRP in April, a 10% gain from the current price.

XLM looks equally bullish against the USD

Prices rose more than 25% in March to hit a 4-month high of $0.113. XLM is now positioned for a short-term correction in the first week of April before rallying to new yearly highs.

At the heart of this bullish outlook is a classic cup-and-handle technical formation. The pattern forms when prices recover in a U-shape (cup) followed by a period of consolidation (handle), both below a common resistance level known as the “neckline.”

At the same time, it will be resolved after the price crosses the neckline and increases the distance from the bottom of the cup to the neckline.

Notably, XLM/USD has been charting a similar cup-and-handle pattern since November 2022. The altcoin entered a breakout pattern during the March price rally and is now around 20% away from its breakout target at $0.131.


Daily XLM/USD Price Chart | Source: TradingView

However, XLM’s daily relative strength index has moved into overbought territory above 70, suggesting a consolidation or correction phase in the first week of April. At that point, the price of XLM will be at risk. The neckline correction is around $0.095, down 12% from the current price.

Ideally, traders view such corrections as a way to analyze the strength of a cup-and-handle breakout. Therefore, a breakout scenario will be confirmed when the price bounces off the neckline accompanied by increasing volume.

Conversely, if the price closes below the neckline on increasing volume, the cup-and-handle breakout scenario risks being completely invalidated.

  • The number of SHIB transactions increased by 700%, what is going on?
  • Stellar (XLM) Price Could Spike After Breaking This Level
  • Does Stellar (XLM) Surge to $0.01 Signal a Trend Change?

front page

As reported by Cointelegraph

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img