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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.
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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.
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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.