XLM & XRP: The Sleeping Giants Ready to Explode in 2025’s Crypto Rally
Stellar (XLM) and Ripple (XRP) are coiled springs—quietly defying gravity while Bitcoin hogs the spotlight. Here’s why these underdogs could outpace the pack.
The Setup: Liquidity Meets Low Expectations
While Wall Street obsesses over ETF flows, XLM and XRP charts print textbook bullish patterns—descending wedges, higher lows, the works. No fanfare, just relentless accumulation.
The Trigger: Cross-Border Payments Heat Up
Q3 2025’s remittance boom plays right into their wheelhouse. XRP’s legal clarity and XLM’s CBDC partnerships? Suddenly relevant again—just as traders rotate out of overbanked blue chips.
The Punchline: Institutions Are Late (Again)
By the time your fund manager ‘discovers’ these gems, retail will have already front-run them—classic finance theater. Watch the 200-day MAs; breaks here could mean double-digit weekly pops.
XRP Price Technical Analysis: Cup-and-Handle in Play
XRP’s chart reveals that the token has been holding firm above its 50-day moving average (MA) — a key level that has provided strong support for months. This stability hints at underlying bullish momentum.
More notably, XRP has formed a cup-and-handle (C&H) pattern, one of the most recognized continuation setups in technical analysis. This pattern consists of:
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Cup: A rounded bottom indicating accumulation.
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Handle: A consolidation phase before the breakout.
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Horizontal resistance: For XRP, this level sits at $3.3811, tested in both November and July.
The distance between the cup’s top and bottom measures approximately 51%, which aligns with strong upward potential once the handle completes. If XRP breaks above the $3.38 resistance:
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First target: $4 — a psychological milestone.
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Extended target: $5.20 — the measured move from the C&H pattern.
This setup implies that XRP’s period of sideways trading could soon give way to a powerful rally.
XLM Price Technical Analysis: Bullish Pennant and Wedge Breakout
Stellar Lumens (XLM) has also been treading water in recent sessions, but its chart structure is increasingly bullish. The token has stayed above the 50-day MA, signaling steady buyer support.
Key bullish indicators include:
Falling wedge breakout: Formed between July 16 and August 4, the wedge pattern is a common reversal signal. XLM has already moved above the wedge’s upper boundary.
Bullish pennant formation: Consisting of a sharp upward move (flagpole) followed by a consolidation triangle, this pattern typically precedes a continuation rally.
Murrey Math Lines breakout: Price has climbed to the top of its trading range, suggesting readiness for an upside extension.
Awesome Oscillator above zero: Momentum has shifted to favor the bulls.
If these signals play out, XLM’s first upside target is $0.6357, its November high — a potential 43% rally from current levels.
Why XRP and XLM Lagged the Rally
While Bitcoin and ethereum have surged toward all-time highs, XRP and XLM have faced headwinds. Market sentiment has been heavily concentrated on:
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BTC as a store of value amid macro uncertainty.
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ETH due to optimism around AI-integrated payments and on-chain innovation.
In contrast, XRP and XLM — both focused on cross-border payments and remittance solutions — have had fewer high-profile catalysts in recent weeks. However, technical breakouts could shift attention back to these assets quickly.
Market Context: Bitcoin and Ethereum Set the Tone
The broader crypto market’s bullish sentiment is undeniable. Bitcoin recently tested $124,128, while Ethereum hovers near multi-year highs amid growing adoption in decentralized finance (DeFi), AI-driven transactions, and institutional use cases.
If the rally in BTC and ETH continues, liquidity and momentum could spill over into mid-cap altcoins like XRP and XLM, fueling their potential breakouts.
Short-Term Outlook and Risk Factors
For XRP:
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A failure to hold above the 50-day MA would weaken the C&H setup.
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Watch for a breakout above $3.38 with strong volume confirmation.
For XLM:
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Support near $0.42 must hold to keep the bullish pennant valid.
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A move above $0.50 could trigger the run toward $0.6357.
Risk factors include a sudden Bitcoin correction, regulatory developments affecting cross-border tokens, and macroeconomic shifts impacting investor sentiment.
Conclusion: Breakouts May Be Imminent
Both XRP and XLM may have lagged the crypto rally so far, but technical indicators suggest that the underperformance could be temporary. XRP’s cup-and-handle pattern and XLM’s bullish pennant/wedge breakout point to the possibility of sharp upside moves in the coming weeks.
As Bitcoin and Ethereum continue to dominate headlines, traders seeking the next big momentum play may soon turn their attention to Ripple and stellar — two established projects with strong use cases and bullish chart setups ready to be tested.
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