Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
In recent weeks and months, XRP has once again become one of the most talked about cryptocurrencies in its 11+ year history. It is understandable, as the price of XRP has surged more than 500%, outperforming Bitcoin (BTC). Many renowned institutions have filed for an XRP ETF, and the coin itself has been mentioned in the discourse of the U.S. Digital Asset Stockpile.
However, few know that amid all this XRP mania, another token, considered to be the beta to the third largest cryptocurrency, has also been making waves on its price chart. We are talking about Stellar (XLM).
Godfrey BenjaminSince November, the price of XLM has soared even more than XRP, gaining 600% and jumping from $0.09 to $0.63 in just a few weeks.
The catch is that both XRP, or more specifically Ripple - the company that uses this cryptocurrency in its services - and Stellar (XLM) were created and designed by one person, Jed McCaleb. While XRP is seen as a solution for businesses, the idea behind XLM is more for individuals.
Tomiwabold OlajideWith this in mind, the XLM vs. XRP ratio, when analyzed correctly, can reveal many good opportunities for traders. For example, back in November, XLM outperformed XRP by 173%, and while most investors were looking at the latter, the former offered opportunities for even more gains.
Gamza KhanzadaevSince then, Stellar has lost its positions against XRP, as beta assets tend to do, losing 70% in recent months.
However, the Bollinger Bands on the XLM/XRP chart signal that another big squeeze may be brewing, as the Stellar token has started to break out of the tight range above the upper band. If history repeats itself, XLM may go on another round against XRP and somehow erase all the declines of the past few weeks.
All in all, these two are probably the most interesting pair to keep an eye on right now.
Vladislav Sopov
Dan Burgin