Ripple's XRP was the main focus among cryptocurrency investors this week as it approached an all-time high, pushing its value to more than $184 billion.
excellent (XLM), which is a popular alternative to Ripple (XRPIt also pumped, hitting a high of $0.5146, its highest level since December 2. It jumped 555% from its 2024 low.
Stellar may be viewed as a cheaper alternative to XRP because the two have historically shown a close correlation. according to Quinn HedgeThe correlation coefficient during the past seven days was 0.99, and it was 0.85 during the past thirty days. Closely linked assets often move in the same direction.
This correlation is likely because both currencies operate in the same industry. Ripple's mission is to simplify the cross-border payment industry using RippleNet technology, which connects financial companies globally.
Stellar, on the other hand, provides technology that enables businesses to build payment solutions. It is also a popular network for USD Coin (USDC) transactions. Stellar has a partnership with MoneyGram, allowing users to send and receive stablecoin via MoneyGram branches.
In addition, Stellar founder Jed McCaleb was also a co-founder of Ripple. This explains why XLM is often considered the “cousin” of Ripple, even though it is not a hard fork of XRP.
In addition, most of the reasons that cause the price of XRP to rise will positively impact Stellar. For example, A XRP ETF Approval This will likely lead to the implementation of the XLM ETF. This is very likely because Grayscale Stellar Lumens Trust, which has a 2.5% management fee, has Really attracted Over $59 million in assets.
XLM price has more room to retest ATH
Another potential catalyst is that XLM still has room for further gains to reach its record high. Stellar would need to rise 65% to revisit its 2021 peak at $0.80. In contrast, XRP is within striking distance of its all-time highs.
The weekly chart shows that Stellar price has formed a golden crossover pattern, with the 50-day moving average crossing above the 200-day moving average. This is one of the most popular bullish chart patterns in trading.
Stellar is also trying to retest last year's high at $0.6350. A confirmed close above this level could indicate further gains, which could push XLM towards an all-time high. This makes Stellar an attractive and affordable alternative to Ripple for investors.
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