Key Points:
- XLM approaching first-ever monthly golden cross (23-month MA crossing above 50-month MA)
- Similar pattern preceded 283.9% gain for XRP in November 2024
- XLM historically follows XRP movements, according to Ripple’s CTO
- Currently trading above both key moving averages
Historic Technical Pattern Emerging
Stellar (XLM) is on the verge of forming a technical pattern never before seen on its monthly chart. The cryptocurrency is about to complete a golden cross, where the 23-month moving average rises above the 50-month moving average.
While such technical events might go unnoticed in traditional markets, they often signal significant price movements in the cryptocurrency space, especially during bullish market conditions.
Technical Analysis: A golden cross is generally considered a powerful bullish signal, indicating the potential shift from a longer-term downtrend to an uptrend.
XRP Connection: A Historical Precedent
What makes this setup particularly noteworthy is the historical relationship between XLM and XRP. Ripple’s XRP experienced an identical golden cross formation in December 2024, shortly after its dramatic 283.9% price surge in November.
During that same period, XLM outperformed its counterpart with an impressive 468% gain – and accomplished this without any crossover signal at the time.
The XLM-XRP Connection
The connection between XLM and XRP has deep roots:
- Similar founding background
- Comparable market positioning
- Historical price correlation patterns
This relationship has been acknowledged by Ripple’s CTO, who noted that XLM frequently mirrors XRP’s market movements, albeit with its own characteristics.
Current Technical Positioning
XLM is currently trading well above both its 23-month and 50-month moving averages, with these key indicators converging toward a crossover point. If completed, this would mark the first-ever golden cross on this timeframe in XLM’s history.
| Indicator | Current Status | Historical Significance |
|---|---|---|
| 23-Month MA | Trending upward | About to cross above 50-Month MA |
| 50-Month MA | Flattening | First potential cross in XLM history |
| Current Price | Above both MAs | Indicates existing bullish momentum |
Analysis and Outlook
While the golden cross formation alone cannot guarantee a repeat of last year’s extraordinary price action, the timing and historical correlation with XRP’s movements present a compelling technical case. The setup suggests XLM may be positioned for potential continuation of its current uptrend.
It’s important to note that this analysis focuses strictly on technical patterns rather than speculative predictions. The completion of the cross would be significant primarily as confirmation of XLM’s dramatically improved market position compared to recent months.
Traders and investors should continue monitoring this development while maintaining appropriate risk management strategies.