Can the XLM Price Jump to $1 Before XRP Jumps to an All-Time High?

Stellar price has erased some of the gains made last month. This decline has mirrored that of Ripple, which has also moved into a short-term retracement

Stellar (XLM) price has dropped sharply in the past few weeks, reflecting the broader downturn in the cryptocurrency market. However, technical indicators suggest that XLM price is poised for a strong rebound.

The daily chart shows that XLM price found support at the 50% Fibonacci Retracement level. It also remained above the 50-day moving average, indicating that bulls still have the upper hand.

Moreover, Stellar has formed a hammer candlestick pattern, characterized by a small body and a long lower shadow. This is typically considered one of the most bullish candlestick patterns in the market over most timeframes.

Additionally, there is a possibility that the recent decline in Stellar price is part of the formation of the corrective wave in the Elliot Wave Theory. This pattern often concludes with a strong bullish breakout, which is likely to occur in this case.

Therefore, the question arises: can XLM price reach $1 before XRP price hits an all-time high?

Considering the astronomical gains that XRP price is projected to make in this cycle, it seems unlikely that XLM price will reach $1 before XRP breaks its previous all-time high. However, once XRP price reaches new all-time highs, it could serve as a catalyst for XLM price to rally further.

A surge to $1 for XLM price would entail an increase of over 130% from the current level. While substantial, it is achievable, considering that the coin rallied nearly 500% in November.

On the other hand, a drop below the support at $0.3642, which represents the 50% Fibonacci Retracement level, would invalidate the bullish outlook. It would indicate that the coin has shifted into the markdown phase of the Wyckoff Method.

XRP Rally to Positively Impact XLM Price

One factor that could significantly influence XLM price is the performance of XRP price. Throughout history, these two cryptocurrencies have maintained a close correlation due to their involvement in the cross-border payments industry. Notably, Stellar founder Jed McCaleb was also a co-founder of Ripple.

As such, several analysts have highlighted XRP price, which recently breached a critical resistance at $1, and anticipate it to reach levels as high as $5 in this cycle and $18 in the long term. A key development that could propel this rally is the upcoming launch of RLUSD.

If these projections hold true, it is likely that XRP price will experience a surge, which could, in turn, lead to even more substantial gains for XLM price. For instance, during the recent bull run, XLM price outperformed XRP price to a remarkable degree.

The crypto market is highly volatile and unpredictable, and large gains can quickly turn into substantial losses. Therefore, it is crucial to exercise caution and conduct thorough research before making any investment decision.