- XRP may rally after XLM’s surge that was triggered by Samsung partnership
- Despite strong rallies from most altcoins, XRP hasn’t posted gains
- Many people don’t believe in the chances of XRP rallying
Stellar Lumens News Today – despite the strong rallies posted among the vast number of altcoins, the fourth largest digital currency XRP is yet to share any major gains. The digital asset has been flat approximately for the bulk of the year. This may not seem like a bad thing, however, when you compare this with Bitcoin’s 20% gains or Ethereum’s 80% gains in the same period, you will see why this performance is underwhelming.
XRP is currently down by 90% from its all-time high position in the excess of $3. An action relating to the long-time correlation between Stellar Lumens and XRP could determine whether the latter token will undergo a much-needed rally.
XRP’s Price Could Rally Because of the Recent Price Action of XLM
According to an earlier report, XLM has been on an amazing run. It is one of the best performing cryptos in the last few days. The digital asset has gained more than 12% as of July 16. The coin has moved past several crucial technical resistances. The digital analyst Peter Brandt has followed XLM’s movement. XLM managed to rally after reports that it had landed a major partnership with the Korean technology giant Samsung.
The collaboration will see Samsung integrate the crypto into its Blockchain Keystore product. Following a minor retracement after hype about the news calmed down, the price of XLM has slid back below the $0.10 area which is resistance. Although, it remains bullish and still retains a few key levels. This action is pertinent to XRP because both assets have been correlated for long periods with each other based on their price action.
Many People Don’t Believe in the Chances of XRP Rallying
The chart mentioned above shows that the two digital currencies were tied at the hip beginning from July last year through April this year. These metrics can be corroborated by the correlation data given by Coin Metrics. According to the Blockchain analytics company, the 180-day correlation between the two assets (XLM and XRP) is over 0.80%. Yet, according to what’s on the chart, they have deviated from each other recently.
Last year, the value of XLM gained nearly 30%. But XRP on the other hand lost 34% in the same period. If the correlation manages to recover, this means the price of XLM has to crash or the price of XRP has to rally. In any case, not everyone is fully convinced that XRP will rally at press time. Even with the strong correlation available to back up claims that XRP may still move to the upside, the opposite is the case.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.