XRP Faces New Challenge as XLM Forms Rare Golden Cross

XRP is now under the spotlight as Stellar (XLM), a longtime competitor, makes a significant technical move that could signal a shift in momentum between the two cryptocurrency giants. A golden cross has recently appeared on the XLM/XRP trading chart – the first time this indicator has occurred in over a year, potentially marking a turning point for market dynamics.

This crossover took place when Stellar’s 23-day moving average rose above its 200-day moving average, creating what analysts refer to as a “golden cross.” In technical analysis, such a formation often indicates the beginning of a longer-term bullish trend. This event is particularly noteworthy considering it hasn’t happened since November 2024 — a period that led to a 135% surge in XLM’s value against XRP in just under a week.

If that historical pattern is repeated, market watchers believe the XLM/XRP ratio could reach approximately 0.3. With XRP currently trading around $3.44, this would put XLM close to the $1 mark — a substantial leap from its recent $0.4601 valuation. However, this outlook is speculative and relies on XRP maintaining its current level while Stellar gains relative strength.

The timing of this technical shift is intriguing. Despite the recent golden cross, XRP is currently leading the broader crypto conversation due to its strong performance over the past week. The token has appreciated by more than 16.6%, significantly outperforming the general market, which posted just a 3% rise in the same period. On the other hand, Stellar has remained relatively stagnant, registering only a 0.2% increase.

This discrepancy between market performance and technical indicators is where strategy and caution intersect. While XRP currently holds a commanding market capitalization of $203.7 billion, Stellar remains far behind with a market cap of $14.3 billion. This contextual difference may give some investors pause, even as the technical charts suggest a possible pivot in XLM’s favor.

The golden cross, in this context, could be signaling more than a short-term technical resistance break. It might be hinting at an upcoming rotation in relative strength between the two assets — something not uncommon in trading pairs with a shared history. Notably, XRP and Stellar were both created by Jed McCaleb, and while their platforms have since taken separate development paths, they continue to be viewed as parallel projects in the realm of cross-border payment innovation and crypto-financial infrastructure.

While XRP continues to make headlines and Stellar sits in its shadow, the shift on the XLM/XRP chart may be signaling that the rivalry is about to intensify. Market participants who look beyond surface-level performance might recognize that historical technical signals, such as this rare golden cross, could foreshadow a larger movement in the altcoin landscape.

Even Ripple’s current CTO, David Schwartz, has alluded throughout the year to the evolving nature of payment infrastructure projects — subtly reinforcing the relevance of old competitors in this innovative race. As traders and investors monitor the evolving tug-of-war between XRP and Stellar, this crossover is sure to become a key element in anticipating the next phase of market action.

Related: XRP Price: $12M Max Pain for Bears

Only time will tell if this golden cross brings a repeat of past performance or if XRP’s continued dominance will hold steady. For now, the technicals have sounded an alarm that savvy investors should not ignore.