Bitcoin surpasses $78,000, leading a rally... Can XRP and Stellar rekindle their long-standing synchronized growth?

▲ XRP, Stellar (XLM)/AI generated image ©

Driven by an atmosphere of easing geopolitical tensions and a steady inflow of institutional funds, the crypto market's long-standing 'brother coins' are stirring, preparing for a synchronized rebound.

According to investment media outlet FXStreet on May 21 (local time), XRP (Ripple) and Stellar Lumens (XLM) have ended their recent price corrections and showed signs of a synchronized rebound during Thursday's trading session. Data from crypto analytics platform SoSoValue revealed that the XRP spot ETF recorded a net inflow of $1.45 million on Wednesday alone, maintaining a five-day consecutive inflow since last week. XLM also successfully tested its key technical support level of $0.1439, demonstrating strong downside rigidity and improving market sentiment.

Derivatives and on-chain indicators also confirm a clear shift to a buyer-dominated market. According to data from crypto analytics platform Coinglass, as of Thursday, the long/short ratios for XRP and XLM were 1.02 and 1.01 respectively, indicating that long positions betting on price increases were dominant. The funding rate, a measure of funding costs, for XRP successfully turned positive on Monday and rose to 0.0027% by Thursday. XLM's funding rate was also on the verge of turning positive from -0.0002%, reflecting optimistic sentiment among traders. Analysis from on-chain data firm CryptoQuant also showed that while overheating in the XRP spot market was cooling, the XLM market was dominated by buying pressure.

Behind this recovery in investor sentiment lies the expectation of a dramatic peace deal between the United States and Iran. As former U.S. President Donald Trump mentioned that negotiations with Iran had entered their final stage, risk-on sentiment across the global macroeconomy significantly revived. Although Iranian President Masoud Pezeshkian continues a tense standoff, stating on X that submission under coercion is an illusion, the market appears to be placing more weight on the possibility of peace. As a result, the leading cryptocurrency, Bitcoin (BTC), surpassed the $78,000 mark on Thursday, driving an overall market rally.

However, from a technical perspective, neither asset has fully escaped long-term downward pressure. XRP, currently trading around $1.384, is confined below its 50-day Exponential Moving Average (EMA) of $1.411, 100-day EMA of $1.481, and 200-day EMA of $1.688, limiting its upside potential. The Relative Strength Index (RSI) remains around 46, and the Moving Average Convergence Divergence (MACD) is in negative territory, indicating that buying pressure has not fully erupted. For XRP to stage a full-fledged rally, it must break through the primary resistance level of $1.411 and the channel top of $1.427, while maintaining the $1.300 support level on the downside is crucial.

XLM, currently hovering around $0.1465, is also in a technical rebound phase within a downtrend where its moving averages are in a bearish alignment. The daily RSI is around 37, indicating bearish momentum, and the MACD remains below the zero line, making it difficult to rule out further declines. For XLM to successfully reverse its trend, it must consecutively break through the primary resistance of its 50-day EMA at $0.1604 and the Fibonacci 23.6% retracement level at $0.1637. If selling pressure intensifies again and the recent support level of $0.1439 is breached, further declines could extend to the previous low of $0.1362.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*