XLM vs. XRP: The Rivalry Heats Up as XLM Token Reaches Key Low Against Long-Time Competitor

After a rough few months, Stellar's XLM token may finally have reached a key low against its long-time competitor, XRP. With both coins striving for prominence in blockchain-based payments, this could mark an important shift — especially for XLM.

The rivalry between Stellar’s XLM token and XRP’s native token has been a subject of interest among cryptocurrency enthusiasts. After facing a decline in value against XRP for several months, XLM appears to have reached a crucial low point in its relative valuation.

This development could mark a potential shift in the competitive landscape, particularly for XLM, given both coins' prominence in blockchain-based payments.

The connection between XRP and XLM can be traced back to the origins of both projects. Jed McCaleb, a key figure in the development of Ripple, which is behind XRP, also co-founded Stellar. This shared history has contributed to the close attention paid to the performance of both tokens.

While XRP is primarily geared toward large financial institutions, Stellar is focused on providing financial services to individuals. The competition between the two has been intense, with both aiming to lead the way in cross-border payments and remittances.

Currently, XLM is valued at approximately 0.13 XRP, reflecting a 1.5% increase over the last 24 hours. This increment, though seemingly minor, is part of a broader trend. In November, XLM surged by over 185% from its yearly low against XRP.

However, the token's momentum was later hindered by a 69% decline over two months, leading to its lower relative valuation against XRP.

Now, theRSI for the XLM/XRP pair has dipped below critical support levels, which could indicate that XLM is becoming oversold. Historically, whenever XLM has reached these low points, it has tended to experience rebounds of at least 14% against XRP.

While it remains a long shot, for XLM to reach a 1:1 ratio with XRP, it would require an increase of 679%. This scenario is not entirely impossible, considering that just four years ago, XLM was trading at 1.7 XRP per token, demonstrating the potential for substantial gains.