On Monday, news spread quickly after a BlackRock XRP ETF filing surfaced on Delaware Corp.’s website. Commission. The filing has since been claimed to be false. But the damage was already done as the token’s price rose rapidly before reversing.
However, an interesting development from this event was a curious correlation that emerged at the time between the XRP price and the XLM price. While the news focused on XRP, XLM was up just as much, with a stunning correlation between the two.
XRP and XLM correlation balloons
In the wake of the rumors BlackRock XRP ETF Application An enthusiast has done something to pump up the price of the token noticed a significant correlation between XRP and XLM. Crypto analyst and Blockchain lecturer Backer took to X (formerly Twitter) to reveal what he calls one of the “most bizarre” moves.
The chart clearly shows that the XLM price is rising just as the BlackRock news broke out with a green candle. Likewise, when the news was debunked and the XRP price started to fall, so did the XLM price, in an eerily similar way.
In another afterBlockchain Backer revealed that XLM had been tracking the movement of XRP in the 2-second time frame. A chart shared with this post showed the movement of XRP and the movement of XLM on the same chart and the movements occurred almost at the same time as shown below:
Source: X
“The fake news was literally XRP specific and only affected XRP, not XLM. In any case, you would expect XLM to sell out like the rest of the market. Instead, it mirrors. Why?” the analyst wondered.
XLM price retraces after pump | Source: XLMUSD on Tradingview.com
Running a similar race
XRP and XLM always seemed to be going in the same circles and the correlation in their price movements is a testament to that. One X user, in response to Blockchain Backer’s post: reasoned that the correlation was because both digital assets effectively “share the same holders.”
A crypto analyst who has also closely linked the performance of XLM to that of XRP is Crypto Bilbuwoo. One of them long-term analysis includes both digital assets which the analyst expects to similarly move to new all-time highs.
In a post on October 15, Crypto Bilbuwoo stated that “the chart shows that the Fibonacci ratio of 1.618 (XLM: 6.5$, XRP: 26~33$) will be completed by the end of December.” The last time this happened was in 2017 and the analyst expects a repeat of that trend, saying there would be a 6,500% increase for both assets.
Despite this correlation, Blockchain Backer still finds Monday’s simultaneous pump strange as he does believes “Those same holders would have ditched XLM for XRP. Not that Fomo bought XLM because of that news story.
However, as another X user explains“Not if they believe that XLM and XRP are brother and sister. There are influencers who have been marketing this for years. Doesn’t sound logical, but with that story it does. XLM would be next!”