Stellar (XLM) Eyes 60% Jump Following XRP’s Climb Toward $2 Milestone

Stellar (XLM) prices will likely jump 60% by December 2024 due to a prevailing bullish continuation indicator and its consistently positive correlation with XRP (XRP), a token associated with its blockchain payment rival, Ripple Labs.

XLM is Nearing Ascending Triangle Breakout

On the daily chart, XLM is painting an ascending triangle pattern, which hints at its ability to continue rallying in December 2024.

For the unversed, an ascending triangle pattern develops when the price consolidates inside a range defined by a horizontal upper trendline and a rising lower trendline. This pattern shows buyers are increasingly willing to pay higher prices, absorbing sell orders at progressively higher levels, thus creating higher lows over time.

In an uptrend, ascending triangle patterns typically resolve when the price breaks above the upper trendline and rises by as much as the triangle’s maximum height, i.e., the maximum distance between the upper and the lower trendline.

Applying the same technical principle to the XLM/USD daily chart shows that the pair is nearing the breakout stage of its ascending triangle pattern. Should this happen, its likely upside target will be around $0.86, up approximately 60% from the current price levels.

Correlation With XRP Boosts XLM’s Upside Scenario

Stellar’s upside prospects have improved further due to its high positive correlation with XRP. The two cryptocurrencies often move in tandem due to shared market narratives and similar use cases in cross-border payments and blockchain technology.

As of Nov. 30, the 30-day average correlation coefficient between the XLM/USD and XRP/USD pairs was 0.87, reflecting an 87% probability of them moving in sync. The correlation has grown stronger, particularly in November after Donald Trump’s recent US presidential election win.

XRP price has boomed by over 280% in November due to the growing possibility that the Trump administration will conclude the ongoing lawsuit between the Securities and Exchange Commission and Ripple Labs, paving the way for broader adoption for XRP Ledger, XRP’s parent blockchain.

The signs are already emerging. On Nov. 29, Fox Business reported that the New York Department of Financial Services (NYDFS) will likely approve Ripple Labs’ RLUSD, an overcollateralized dollar-pegged stablecoin, in early December.

XRP price has rallied 25% after the news went to the wire, now eyeing $2.

XRP’s bullish prospects could bring similar attention to Stellar based on their similar performance so far in November. That could trigger the ascending triangle setup discussed above.