XRP Price Surges to $1: Will Stellar Lumens (XLM) Be Next?

Ripple (XRP) has been on an impressive rally, reaching $1 for the first time since 2021. The token has surged by over 220% from its 2022 low, pushing its market capitalization above $64 billion. This strong performance has sparked questions about whether Stellar Lumens (XLM), a cryptocurrency with a similar mission, could follow in XRP’s footsteps and hit the $1 mark.

Ripple’s Rally: What’s Driving the Surge?

The recent surge in XRP’s price is largely attributed to the market’s reaction to the potential impact of Donald Trump’s election and changes within the U.S. Securities and Exchange Commission (SEC). Some analysts speculate that the SEC may soon drop its ongoing legal battles with Ripple Labs, which could unlock major opportunities for the company, particularly in the money transfer industry and with banking partnerships.

In addition, data from Santiment indicates that the rally has been fueled by significant accumulation from whales and sharks. These large investors have bought up $526 million worth of XRP over the past week, reportedly purchasing tokens from retail traders who have been taking profits during the rally.

Stellar Lumens (XLM) Benefiting from XRP’s Momentum

As Ripple continues to surge, Stellar Lumens (XLM) is also seeing its own gains. Over the past three weeks, XLM has climbed steadily, reaching $0.2554—its highest level since January 2022. Stellar, like Ripple, aims to transform the global money transfer industry, and both share a similar vision for cross-border payments.

Stellar’s founder, Jed McCaleb, was also one of Ripple’s co-founders, and the two networks share a similar technological foundation. Stellar has made significant progress in establishing partnerships with major companies, including Circle and Franklin Templeton, a global asset manager overseeing over $1.5 trillion in assets. These alliances strengthen Stellar’s position as a serious contender in the blockchain-based payments space.

Can XLM Reach $1?

With XRP now hitting the $1 mark, many analysts are wondering if Stellar Lumens (XLM) could follow suit. At its current price of around $0.24, XLM would need to rise by 316% to reach $1. While this is a substantial increase, there are signs that Stellar is well-positioned to make such a move.

XLM Technical Analysis

Looking at the weekly chart, XLM has formed a double-bottom pattern at $0.080 and recently broke above its neckline at $0.1974, its highest level since July 2023. This breakout is a bullish signal, and the token has also risen above its 50-day moving average, a key indicator of upward momentum.

Stellar is currently hovering near the 23.6% Fibonacci Retracement level, which is often seen as a potential support area. Key technical indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are signaling further bullish momentum.

Analysts predict that XLM could rise to the 50% Fibonacci Retracement level at $0.4335, representing an 83% increase from its current price. If XLM continues its ascent and surpasses its all-time high of $0.80, it could confirm the potential for a rally to $1.

With XRP breaking through its $1 resistance level, many are speculating that Stellar Lumens (XLM) could follow in its footsteps. Both projects have a shared vision for transforming cross-border payments, and Stellar’s growing network of partnerships gives it a solid foundation to build on.

While XLM would need to climb significantly to hit $1, the technical indicators suggest that the cryptocurrency is on a bullish trajectory. If the momentum continues and XLM breaks through its previous highs, the $1 target could become a realistic milestone in the near future. As always, investors should stay informed and monitor the market closely, as cryptocurrency prices are volatile and subject to change.