Stellar (XLM) Prepares for a 16% Price Move as It Breaks Up with XRP

Since the start of February, the Stellar token has been exhibiting lower highs and higher lows. This meant its key supports and resistances have been narrowing along the way.

The Stellar (XLM) token has been converging within a symmetrical triangle since early February.

A breakout within the converging trendlines could signal a decisive price action for XLM.

The direction of the breakout will determine whether Stellar is headed for a bullish or bearish run.

The Stellar (XLM) token has been converging within a symmetrical triangle since the start of February. This signaled a narrowing range of key supports and resistances.

Meanwhile, their points have been treading within a pair of converging trendlines, forming a symmetrical triangle pattern. A breakout within the converging lines could signal a decisive price action for XLM.

The direction of the breakout will then determine whether the crypto asset is headed for a bullish or bearish run.

Ali Martinez, an analyst who primarily bases his forecasts on chart readings, highlighted the pattern in his recent analysis. He noted that XLM’s key support lies at $0.321, while its resistance is at $0.345.

A breach in the support could lead to a markdown to $0.30 or even lower. However, a breakout above the resistance could propel the crypto asset’s price between $0.37 and $0.38, or around 16%, from today’s average price of $0.32.

Stellar Decouples From XRP, Impact Of Economic Data In Focus

Bitcoin (BTC) and the broader crypto market will be reacting to the upcoming key economic data releases in the US this week. These include the initial jobless claims and Core PCE (personal consumption expenditures) figures.

The numbers will be a subject of deliberation in the upcoming Federal Open Market Committee (FOMC) meeting next month, which will determine whether the Federal Reserve will implement an interest rate adjustment.

Among the digital assets that will be impacted by the Fed’s move is XLM. That’s not even considering the immediate effects of whatever policies President Donald Trump will bring to the table within the time frame.

A negative reaction by market participants during these events could dampen any positive momentum building up in Stellar.

However, it’s interesting to note that XLM has already decoupled from XRP. Last December, both assets still tended to move in tandem with each other.

Stellar typically piggybacked with major announcements within the XRP ecosystem, especially in the developments of the US Securities and Exchange Commission (SEC) case against Ripple and XRP and Ripple USD (RLUSD)’s growing institutional adoption in cross-border settlements.

Now, according to Macroaxis, the three-month correlation coefficient between XLM and XRP is at -0.03. This is a significant departure from their 0.97 direct correlation in December.

The figures indicate a lack of direct or inverse relationship between their values. Nonetheless, the analytics platform pointed out that XLM is 0.08 times more volatile than XRP. Stellar also trades with -0.14 of its potential returns per unit of risk at this rate.