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Many may not know, but two important cryptocurrencies — XRP and Stellar (XLM) — actually share the same roots in the person of Jed McCaleb. Apart from founding Mt. Gox and Ripple, McCaleb is indeed one of the best-known unknowns in the crypto industry, but that is a subject for another article.
Why both XRP and XLM are in today's headlines is because, following all the autumn turbulence on the market, the latter found itself in a spot where a 33% rise in the price is very likely.
XLM on the verge of 33% upside
According to a recent outlook, the Stellar token has a real chance to soar from $0.254 to as high as $0.34, if the current market environment maintains. The chart behind this outlook highlights how XLM has repeatedly reacted to the same support and resistance zones across the year, with the $0.23 area acting as a firm base and the region around $0.34 forming a clean upper boundary that has been tested before.
The projected dotted path on the chart simply mirrors that historical behavior, assuming the market repeats the previous structure rather than forming a new trend. This makes the scenario grounded in past price responses, not speculative assumptions.
XLM is usually seen as a "beta" play to XRP, the thesis which is based on the fact that both share the same segment and narrative and, as many noticed, market structure. What differs them, though, is that the Stellar token is 16 times lighter in market cap than XRP — $8.14 billion versus $128 billion.
This makes XLM a more volatile asset, but it offers a greater return if the bull setup validates.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team