Hedera (HBAR) and XRP are both US-based crypto projects. Over the past year, their price movements have shown a strong correlation. Analysts are asking whether this correlation could reveal a possible scenario by the end of the year.
They expect positive signals from both assets, ranging from technical analysis to fundamental analysis, to push prices higher through year-end.
How are HBAR and XRP correlated?
Hedera is a public distributed ledger platform built on hashgraph consensus and governed by a council of major companies inside and outside the industry.
In contrast, XRP is the native token of the XRP Ledger (XRPL), a decentralized blockchain developed by Ripple to enable fast and efficient cross-border payments.
Studying the correlation between HBAR and XRP is well-founded. Comparing their price charts shows that both have risen and fallen together over the past year.
Correlation data from DefiLlama confirms this. The correlation coefficient between the two altcoins is 0.97 over seven days, 0.93 over one month, and 0.89 over one year.
These high figures reflect strong alignment in investor sentiment for both short-term and long-term horizons. Because of this correlation, technical analysts gain more confidence when predicting price action.
Analyst Steph Is Crypto believes both assets are forming a falling wedge pattern. Prices for both tokens have already reached the end of the pattern, preparing for a breakout in September.
“XRP and HBAR breakout imminent!” Steph Is Crypto said.
The falling wedge is a classic bullish chart pattern. Fibonacci measurements suggest XRP could climb to $4.6, while HBAR could reach $0.4.
Even without focusing on short-term analysis, many investors believe both tokens will maintain long-term growth momentum. They consider them portfolio priorities during bear markets.
“Both are long-term holds in my opinion. You’d be crazy not to hold until the next bull cycle. A lot of these coins gaining traction and utility won’t retrace as much in the bear market compared to previous ones,” investor Dylan Deloach said.
However, some investors argue that HBAR could outperform XRP due to tokenomics. XRP has a total supply of 100 billion tokens, with 60% in circulation. HBAR has a total supply of 50 billion tokens, with more than 84% in circulation.
This means XRP may face prolonged and heavier unlock pressure compared to HBAR.
Meanwhile, each project is pursuing its own path to fuel price momentum. Hedera is actively expanding its ecosystem through events such as Sibos 2025 (SWIFT’s annual FinTech conference) and initiatives involving stablecoins, CBDCs, and DeFi.
Ripple continues to grow partnerships with banks and financial institutions while developing its RLUSD stablecoin. Positive developments in the ongoing legal battle with the SEC have also helped improve investor sentiment.
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