On Monday, the news spread quickly after a BlackRock XRP ETF Deposit appeared on the Delaware Corp website. Commission. The record has since been deemed false. But the damage was already done as the price of the token quickly climbed before reversing.
An interesting development from this event, however, was a curious correlation that emerged between the XRP price and the XLM price at the time. While the news was localized to XRP, XLM had risen just as much, emerging with an astonishing correlation between the two.
XRP and XLM Correlation Balloons
Following the rumor BlackRock XRP ETF Deposit driving up the price of the token, an enthusiast has REMARK a significant correlation between XRP and XLM. Crypto analyst and educator Blockchain Backer took to X (formerly Twitter) to reveal what he calls one of the “bizarre” moves.
The chart clearly shows that the price of XLM surged just as the BlackRock news broke out with a straight green candle. Likewise, when the news was debunked and the XRP price started to fall, just like the XLM pricein a strangely similar way.
In other job, Blockchain Backer revealed that XLM tracked the movement of XRP within 2 seconds. A graphic shared with this post showed The movement of XRP and the movement of XLM on the same chart and movements occurred almost at the same time as shown below:
“The fake news was literally specific to XRP and would only impact XRP, not XLM. If anything, one would expect XLM to sell off like the rest of the market. Instead, it reflects. Why?” asked the analyst.
XLM price retraces after pump | Source: XLMUSD on Tradingview.com
Run a similar race
XRP and XLM have always seemed to move in the same circles and the correlation between their price movements is proof of that. A user X, in response to Blockchain Backer’s message, reasoned that the correlation was due to the fact that the two digital assets “actually share the same holders.”
A crypto analyst who has also closely linked XLM’s performance to that of XRP is Crypto Bilbuwoo. One of their long-term analysis includes both digital assets that the analyst expects to reach new all-time highs in the same way.
In an article on October 15, Crypto Bilbuwoo claimed that “the chart shows that the Fibonacci ratio of 1.618 (XLM: $6.5, XRP: $26~33) will be reached at the end of December. » The last time this happened was in 2017 and the analyst expects a repeat of this trend, saying there would be a 6,500% upside for both assets.
Despite this correlation, Blockchain Backer still finds Monday’s simultaneous pump strange because it believes “these same holders would have abandoned XLM for XRP. It was not fomo who bought XLM on this news.
However, like another user explain, “Not if they believe that XLM and XRP are brother and sister. Some influencers have been peddling this for years. This doesn’t make logical sense, but it does with this story. XLM would be next! »