The price of Stellar (XLM) has been on a tear in recent days, and analysts are watching to see whether XRP will follow suit.
In a tweet, analyst Kevin Cage asked whether XRP could be preparing for a breakout similar to XLM’s recent rally. He highlighted the historic correlation between the two assets.
“Will XRP follow XLM in June? Normally they’re correlated,” Cage wrote while sharing side-by-side TradingView charts of both cryptocurrencies.
Key Points
- XLM jumped 41% this week, sparking speculation that XRP could soon follow with a similar breakout.
- Analyst Kevin Cage pointed to the long-standing price correlation between XRP and XLM.
- While XLM surged on strong momentum, XRP remains stuck below key resistance despite positive market news.
- Some analysts expect XRP to rally 30% to 35% by June, potentially pushing the price toward $1.76.
XLM Surges 41% While XRP Lags
The charts showed XLM posting a strong breakout after months of sideways trading. Specifically, Stellar jumped more than 22% in a single day today, extending its weekly gains to 41%. This has pushed its year-to-date performance back into positive territory at 3.7%.
XRP, however, has continued to trade within a tighter range near $1.31 despite a modest 2.54% daily increase. CoinMarketCap data show XRP is down 3.8% over the past week, 5.62% over the past month, and 28.5% since the start of the year.
Why Traders Compare XRP and XLM
XRP and XLM have long been viewed as closely connected assets within the crypto market due to their shared focus on payments and cross-border transfers.
Because of that relationship and shared origin, traders frequently monitor one token for clues about the other’s potential price direction. Historically, rallies in XRP have sometimes been followed by similar moves in XLM, although not always at the same pace.
Kevin Cage’s comparison has therefore suggested that XRP could attempt a delayed breakout if buying momentum continues across the broader market.
Momentum Divergence Raises Questions
The TradingView charts also highlighted a sharp difference in momentum between the two assets.
XLM’s relative strength indicator surged alongside price action, signaling aggressive buying pressure. XRP’s momentum, meanwhile, remained comparatively weak as the token continued consolidating below key resistance levels.
Some commentators believe XRP may need a stronger catalyst before matching XLM’s move.
Commenting on Kevin Cage’s post, veteran trader Corey Blake remarked that XLM normally follows XRP, so this situation would be the inverse. He added that he is curious to see how it plays out this time.
Meanwhile, X user Ricardo Jean remarked that XLM surged on just one piece of good news, while XRP, despite countless positive developments, can barely stay up. Jean’s remark referred to the DTCC-Stellar announcement this week regarding collaboration on tokenization and building a more interoperable financial system.
Will June Be XRP’s Catch-Up Moment?
For now, traders are closely watching whether XRP can follow the path XLM has already taken.
Some analysts are calling for a 30% to 35% upside for XRP by June, which would put the XRP price around $1.76. While significant, the coin would still remain in the red year-to-date, but the momentum could open the door for a retest of $2.
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