Stunning Correlation Emerges Between XRP And XLM, What’s Going On?
15 November 2023 - 12:00AM
NEWSBTC
On Monday, news quickly spread after a BlackRock XRP ETF filing
popped up on the Delaware Corp. Commission website. The filing has
since been claimed to be false. But the damage was already done as
the token’s price surged quickly before reversing. One interesting
development from this event though was a curious correlation that
emerged between the XRP price and the XLM price at the time. While
the news was localized to XRP, XLM had surged just as much,
emerging with a stunning correlation between the two. XRP And XLM
Correlation Balloons In the wake of the rumored BlackRock XRP ETF
filing pumping the token’s price, one enthusiast has noticed a
significant correlation between XRP and XLM. Crypto analyst and
educator Blockchain Backer took to X (formerly Twitter) to reveal
what he terms as one of the “most bizarre” moves. Related Reading:
Analyst Predicts 8800% Ascent to $35 Cardano (ADA), Here’s When The
chart clearly shows the XLM price surging just as the BlackRock
news broke with a straight green candle. Likewise, when the news
was debunked and the XRP price began to fall, so did the XLM price,
in an eerily similar fashion. In another post, Blockchain Backer
revealed that XLM had followed XRP’s move in the 2-second
timeframe. A chart shared with this post showed XRP’s movement and
XLM’s movement on the same chart and the moves happened at almost
the same time, as shown below: Source: X “The fake news was
literally XRP specific, and would impact XRP only, not XLM. If
anything, you’d expect XLM sell off like the rest of the market.
Instead, it mirrors. Why?” the analyst wondered. XLM price retraces
after pump | Source: XLMUSD on Tradingview.com Running A Similar
Race XRP and XLM have always seemed to run in the same circles and
the correlation in their price movements has been a testament to
that. One X user, in response to Blockchain Backer’s post, reasoned
that the correlation was because both digital assets actually
“share the same holders.” One crypto analyst who has also closely
tied the performance of XLM to that of XRP is Crypto Bilbuwoo. One
of their long-running analysis includes both digital assets which
the analyst expects to move toward new all-time highs in the same
fashion. Related Reading: Top 5 Meme Coins That Are Outperforming
The Altcoin Rally In an October 15 post, Crypto Bilbuwoo posited
that “The chart shows that 1.618 Fibonacci ratio(XLM: 6.5$, XRP:
26~33$) will be completed at the end of December.” The last time
this happened was back in 2017 and the analyst expects a repeat of
that trend, saying there would be a 6,500% surge for both assets.
Despite this correlation, Blockchain Backer still finds Monday’s
simultaneous pump strange as he believes “those same holders would
have dumped XLM for XRP. Not fomo bought XLM on that news story.”
However, as another X user explains, “Not if they believe XLM and
XRP are brother and sister. There are some influencers peddling
this for years. Doesn’t make logical sense but does with that
narrative. XLM would be next!” Follow Best Owie on X (formerly
Twitter) for market insights, updates, and the occasional funny
tweet… Featured image from Guarda Wallet, chart from
TradingView.com
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