As a seasoned analyst with over a decade of experience in the cryptocurrency market, I have seen my fair share of market anomalies and unexpected price surges. However, the performance of Stellar (XLM) on January 1, 2025, has left me truly bewildered.
The 15% rally in XLM’s price during the trading session, coupled with a staggering 94.28% increase in its trading volume over the past 24 hours, is certainly not something I would have predicted based on its historical correlation with XRP. The fact that this rally occurred independently of XRP’s behavior adds an extra layer of intrigue to the situation.
Having closely followed both Stellar and Ripple (XRP) for years, I am well aware of their competitive nature in the blockchain payments space, despite their distinct focuses. While it is true that XLM targets financial inclusion for the underbanked population, and XRP aims at financial institutions, they have always been connected at the hip, so to speak.
The price action of XLM this time around is particularly perplexing because it found its ceiling at the 23-day moving average, a strong short-term price indicator, only to fall below the 50-day moving average and form a local “death cross” – a pattern that usually precedes a downtrend. Yet, here we are, with XLM being the most profitable token of the last 24 hours among the top 100 largest cryptocurrencies.
It’s a curious situation indeed. I have often joked that the crypto market is like watching a rollercoaster ride without a seatbelt, but this time around, it feels more like riding a unicorn through a hurricane. Only time will tell if this price surge was a one-off event or the start of a new trend for Stellar. One thing’s for sure – the crypto market never ceases to surprise us!
2025 saw Stellar token (XLM) kick off the year with a significant jump, soaring by around 15% in a single trading session on January 1. This sudden increase can be attributed to unusually high purchase activity, as the trading volume of XLM has surged by approximately 94.28% over the last 24 hours. The cause behind this buying frenzy is yet to be determined, as there seem to be no clear fundamental or technical factors explaining such exceptional performance.
As an analyst, I’ve observed that the fluctuations in XLM’s price tend to mirror those of XRP, with XLM serving as a more volatile counterpart to the fourth largest cryptocurrency.
Yet, contrary to expectations as competitors in the blockchain payments sector, Stellar and XRP have shown different trends lately, as this recent surge appears to be occurring separately from XRP’s performance. Despite their shared focus on the same area, Stellar and XRP have unique emphases that seem to be playing out differently now.
In contrast to XRP catering to established financial entities, Stellar focuses on offering low-cost financial solutions for the unbanked community. Interestingly, both digital currencies have a common origin, with Stellar being initiated by Jed McCaleb, a co-creator of Ripple.
Death cross rally — what?
Additionally, it’s significant to mention that the cost of XLM reached its peak where the 23-day moving average lies, which is generally regarded as a robust short-term price benchmark.
Lately, XLM dropped and dipped beneath its 50-day moving average, creating what’s known as a “death cross,” a pattern often seen as a warning signal for a downward trend. However, XLM has been experiencing significant growth, which adds to the intrigue surrounding its price fluctuations.
In summary, over the past 24 hours, the Stellar token has proven to be the most profitable among the top 100 largest cryptocurrencies – an unexpected outcome for the year 2025, yet it has materialized.
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2025-01-01 18:11