Stellar (XLM) Pumps 555% From 2024 Low, Eyes All-Time High as XRP Nears ATH

While Ripple (XRP) has been making headlines with its impressive rally, another cryptocurrency that has quietly soared is Stellar (XLM). The two coins have historically exhibited a close correlation due to their presence in the same industry.

As XRP approached its all-time high this week, pushing its valuation to over $184 billion, Stellar also pumped, reaching a high of $0.5146, its highest level since Dec. 2. The coin has jumped by 555% from its lowest level in 2024.

According to CoinHedge, the correlation coefficient between XRP and XLM over the past seven days was 0.99, and it was 0.85 over the past 30 days. Closely correlated assets often move in the same direction.

This correlation can be attributed to the fact that both coins operate in the same domain. Ripple aims to simplify the cross-border payment industry with RippleNet technology, which connects financial companies worldwide.

On the other hand, Stellar provides technology that enables companies to build payment solutions. It is also a popular network for USD Coin (USDC) transactions. Stellar has a partnership with MoneyGram, allowing users to send and receive the stablecoin across MoneyGram’s branches.

Adding to the connection, Stellar's founder, Jed McCaleb, was also a co-founder of Ripple. This explains why XLM is often considered Ripple’s “cousin,” though it is not a hard fork of XRP.

Moreover, most of the reasons why XRP price is rising will positively impact Stellar. For example, an XRP ETF approval will likely lead to an XLM ETF application.

This is highly probable because the Grayscale Stellar Lumens Trust, which has a 2.5% management fee, has already attracted over $59 million in assets.

Another potential catalyst is that XLM still has room for more gains to reach its record high. Stellar would need to rise by 65% to revisit its 2021 peak of $0.80. In contrast, XRP is already within touching distance of its all-time high.

The weekly chart showcases Stellar’s price forming a golden cross pattern, where the 50-day moving average crosses above the 200-day moving average. This is one of the most well-known bullish chart patterns in trading.

After bouncing off the 50-day MA as support, Stellar is now attempting to retest last year’s high of $0.6350. A confirmed close above this level could signal further gains, potentially pushing XLM toward its all-time high.

This makes Stellar an appealing and more affordable alternative to Ripple for investors looking to capitalize on the booming Web3 industry without breaking the bank.