Stellar enthusiasts are rejoicing as the cryptocurrency staged an impressive 15% rebound against its arch-rival XRP just two days after the XLM/XRP pair plummeted to a record low.
This swift recovery has been a source of relief to investors who were concerned about the dip.In a remarkable turnaround, the XLM/XRP pair surged to its intraday high of 0.20 XRP.
This marked a significant decoupling between the two currencies in the U.S. dollar market. Interestingly, while XRP saw a decline in its value since March 29, XLM’s price has soared by over 11%.
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This upturn in Stellar’s value has been attributed to several factors, including its recent partnership with the Ukrainian government to develop a central bank digital currency.
Additionally, the announcement of a new decentralized exchange platform, StellarX, has also contributed to the positive sentiment around the currency.
Despite facing fierce competition from other cryptocurrencies in the market, Stellar has proven to be a resilient and promising player in the blockchain ecosystem.
With its focus on creating a more accessible and inclusive financial system, Stellar’s future looks bright, and investors are eagerly keeping an eye on the developments surrounding this dynamic digital currency.
Looking at the broader picture, Stellar’s XLM has experienced a sharp decline since its peak in January 2021.
Interestingly, this peak occurred just a month after the SEC filed a lawsuit, alleging that Ripple sold securities in the form of XRP tokens.
The legal battle between SEC and Ripple has been observed pretty closely by the crypto community, as it has significant implications for the future regulation of crypto.
The outcome of the case could potentially set a precedent for other crypto companies, and many experts have been weighing in on the matter.
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However, in recent weeks, there have been some positive developments for Ripple, with legal experts increasingly predicting a favorable outcome for the company.
This has brought some optimism to XRP investors and has contributed to a recent uptick in the currency’s value.
Despite the volatility and uncertainty surrounding XLM and XRP, it’s clear that both currencies remain important players in the cryptocurrency space.
On a long-term horizon, the trend for XLM against XRP remains bearish. However, there are some signs of a potential rebound in the coming month.
Many analysts say that the ongoing recovery for XLM/XRP began at its multi-month descending trend line resistance, which forms a falling channel. This suggests that there is potential for a breakout above the channel in the near future.
Furthermore, there are indications of a bullish reversal forming on the chart, such as a bullish divergence in the relative strength index and a potential double-bottom pattern.
If these patterns hold true, there could be a significant uptick in XLM’s value against XRP in the coming weeks, with a potential target price around 0.23 XRP.
However, as with all investments, it’s important to keep in mind that there is always the possibility of unforeseen events impacting the market and causing volatility.
Moving into April, the XLM/XRP pair is setting its sights on flipping the 0.198-0.207 XRP resistance range to support.
This move could potentially lead to a run-up towards 0.22 XRP, which will be a ten percent increase from current prices.
Stellar’s XLM experienced a rally of over 25% in March, reaching a four-month high of $0.113. With its current positioning, XLM may be poised for a short-term price correction in the first week of April, followed by a rebound rally toward new yearly highs.
A key factor behind this bullish outlook is the classic technical pattern known as the cup-and-handle. This pattern typically occurs when the price goes through a U shaped recovery.
The pattern resolves when the price breaks above the neckline and rises by as much as the distance between the cup’s bottom and neckline.
Interestingly, XLM has been exhibiting a similar pattern since November 2022. XLM/USD moved into the breakout stage of this pattern during its price surge in March and is now just twenty percent off from the breakout target close to $0.131.