u.today
Last Sunday, U.Today reported that the price of the popular cryptocurrency $XRP is about to take a nosedive. It will be the worst crash since 2018, when it lost 85% in three months. This time does not seem as dangerous for $XRP, but there might be more damage than initially thought, as Stellar ($XLM) token is on the same path for its price.
Both Stellar and $XRP have always been seen as challengers in the cross-border payments space. They have similar roots; Stellar was cofounded by Jed McCaleb, who also founded Ripple. They are often competing for a share of the blockchain payments ecosystem, and as a result, $XLM has been acting like a beta version of $XRP in terms of price action.
According to Bollinger Bands, after a big surge in the last few weeks, the price of $XRP hit a ceiling at the upper band, and now it is more likely to drop back to the median.
For $XLM, it is a similar story. The upper band high was reached and even broken at $0.6374, while the median, represented by the 20-day moving average, is stretching at $0.21. A similar thing happened in 2021. Back then, the price of $XLM reached a high at $0.797 and then dropped by 48.73% in just one week.
The Stellar token has already seen a 40% drop over the last three weeks, and its price is now at $0.386. Could we be heading for another 45% dip? If we look at what happened in 2021, the answer is maybe. But nothing is set in stone, and the price performance of $XLM will still very much rely on broader market tendencies and not historical experience.