XLM Price Skyrockets 30%, Backed by XRP Correlation and Market Strength

• XLM’s 30% price increase is closely tied to XRP’s rally, reflecting their strong historical correlation, boosted by shared roots and market momentum.
• XLM’s bullish outlook suggests a potential target of $0.24, although market risks, including profit-taking, could cause temporary price corrections.

As per current developments, trading volume for Stellar (XLM) skyrocketed to $2.96 billion, the highest since the 2021 bull market, indicating heightened investor confidence and buying pressure. Previously, a CNF report discussed that XRP and XLM dynamic duo was designed for a global settlements. at that time, both XRP and XLM were exploring tokenization to streamline regulatory compliance and enhance financial efficiency.

However, XLM has witnessed a dramatic 30% price increase within 24 hours, mirroring the recent rally of Ripple’s XRP. This rally underscores XLM’s historical correlation with XRP, given their shared roots and focus on blockchain-based cross-border payments.

XLM and XRP have often moved in tandem, with a correlation coefficient of 0.96 over the past 90 days, according to Macroaxis. The connection stems from shared foundations, with Jed McCaleb, a co-founder of Ripple, later founding Stellar. This tight linkage, alongside Ripple’s recent price momentum, has played a pivotal role in boosting market interest in XLM.

Strong Bullish Patterns and Potential Gains for XLM

Since XLM shows multiple confirmed bullish patterns, as previously highlighted by CNF, this indicates the potential for a significant rally, with a breakout target suggesting over 600% potential gains. Technical indicators like the Ichimoku Cloud suggest strong support for XLM, potentially driving its price to $0.24. However, a profit-taking wave could counter this trend, pushing the price back to $0.16.

As of now, Ripple (XRP) is trading at $1.13, having surged by 5.28% in the past day and 92.89% in the past week. With open interest rising to $75.05 million, the highest since Ripple’s partial legal win, bullish sentiment remains strong, setting the stage for further price action.