XLM Surges 41%, Is XRP Next?...Will a June Follow-up Rally Erupt?

▲ XRP, Stellar (XLM)/AI generated image

As Stellar (XLM) surged 41% in a week, market attention is now shifting to the possibility of XRP, which has historically shown a high correlation, following suit in June.

According to crypto media outlet The Crypto Basic on May 29 (local time), analyst Kevin Cage stated on X (formerly Twitter) that it's worth noting whether XRP is preparing for a breakout similar to XLM's recent rally. Cage mentioned the long-term correlation between the two assets, saying, “Will XRP follow XLM in June? The two assets usually show a correlation.”

XLM has shown strong upward momentum in recent days. XLM jumped over 22% just on that day, and its weekly gain expanded to 41%. As a result, its year-to-date return also turned positive, reaching 3.7%.

In contrast, XRP remained in a narrow range near $1.31 despite a daily gain of 2.54%. According to CoinMarketCap data, XRP has fallen 3.8% over the past week, 5.62% over the past month, and 28.5% year-to-date. The Crypto Basic reported that unlike XLM, which showed a strong breakout, XRP's movement has been limited below a major resistance level.

The reason traders view these two assets together is their common area of focus: payments and cross-border remittances. The Crypto Basic explained that due to the relationship between the two assets and their common starting point, market participants have used the movement of one as a clue to gauge the price direction of the other. However, in the past, a trend where XLM followed an XRP rally was observed, and market interest has grown because the current situation is the opposite.

XLM's Relative Strength Index surged with the price increase, indicating strong buying pressure. XRP's momentum was relatively weak, and it continued to consolidate below a major resistance level. Veteran trader Corey Blake commented that XLM typically follows XRP, but this situation is the opposite trend. X user Ricardo Jean stated that XLM surged with just one piece of good news, while XRP has failed to maintain its price despite several positive developments.

Some analysts believe that XRP could rise by 30% to 35% by June. If it moves according to this forecast, XRP's price could reach approximately $1.76. The Crypto Basic reported that even with such a rise, XRP's year-to-date return would still remain negative, but if momentum picks up, the possibility of retesting $2 could open up.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*