thecryptobasic.com
Renowned crypto analyst EGRAG has called attention to Stellar ($XLM), a token that has continued to mirror the price movements of $XRP since 2018, with a potential for a significant upsurge.
EGRAG addressed investors with a bearish stance on $XLM in his latest analysis, delivered this morning. The analyst charged these investors to rethink their sentiment towards Stellar, citing solid potential.
While his chart only provides data on $XLM’s price actions, an investigation by The Crypto Basic confirms the theory of a correlation with $XRP.
Correlation between $XRP and $XLM
Notably, $XLM surged to its all-time high of $0.9309 in January 2018. This was the same month that $XRP rallied to an all-time high of $3.31. Like $XRP, $XLM also dropped from the all-time high, collapsing to a low of $0.0261 in March 2020. $XRP had also plummeted to a low of $0.1013 that month.
When $XRP staged a comeback, gaining by 177% in November 2020, $XLM also rallied, appreciating by 160%. $XRP dropped by 66% in December 2020. In response, $XLM also shed 37% of its value.
Recall that $XRP recorded one of its biggest rallies in April 2021, skyrocketing to a high of $1.9669 on the back of a 180% upsurge that month. $XLM followed suit, rallying to $0.7978 before facing setbacks. $XRP has continued to dip since the April 2021 high, with $XLM also facing similar drops.
Bullish $XLM Perspective
Highlighting this strong correlation, EGRAG stressed that when $XRP, the “big brother,” rallies, $XLM follows. Data from EGRAG’s chart reveals a series of channels $XLM has followed since January 2018 in tandem with $XRP. Based on his bullish outlook for $XRP, the analyst believes $XLM deserves a similarly bullish perspective.
Notably, the first channel spanned January 2018 to May 2020, indicating a downtrend. The second channel ran from April 2020 to May 2021, revealing an uptrend. The fourth channel was another downtrend from June 2021 to December 2022.
EGRAG’s chart suggests that $XLM has entered the next channel, which is expected to be another uptrend. Currently trading for $0.1072, $XLM is over 82% up from its value in December. Despite this, the chart projects further rallies for the asset, specifically to the $1 price range.