- While both Stellar and XRP saw huge losses during the mid-March price crash, both are currently recovering.
- Stellar’s recovery greatly outperformed that of XRP, however, with XLM price surging twice as much.
- One reason for this might be staking support on Binance, which encourages users to HODL XLM.
Q1 2020 was concluded with a massive drop in the crypto and stock markets alike. The coronavirus pandemic caused fears of loss, which inspired many to immediately cash out in an attempt to save the value of their investments.
In the crypto industry, the event is now known under multiple names, such as mid-March price crash, Black Thursday, and Coronavirus Crash. When it happened, no project was spared, and even Bitcoin itself saw a massive drop.
Since then, however, many of the crypto projects saw a considerable recovery, while some were not as fortunate.
XRP recovers slowly, might enter bearish zone
XRP, the fourth-largest cryptocurrency by market cap, dropped to an incredibly low price of only $0.10, while it previously sat at around $0.25. Right now, the coin’s price is on the way of recovery, although it is advancing rather slowly when compared to other top altcoins.
Currently, XRP price sits at $0.192, which is around 76.8% recovery from its YTD lows. However, this is also not nearly as good a position as the one XRP held before the crash. The crash took the coin way below its strongest support at $0.20, and there are indications that XRP/USDT pair is moving towards a bearish territory.
Right now, the coin’s strongest supports sit at $0.18 and $0.17. However, if the bearish period does arrive, XRP could go down to $0.15, or even $0.12.
Stellar outperforms XRP
Meanwhile, XRP’s greatest rival, Stellar (XLM), appears to be doing a lot better, even though it also saw a massive drop during the crash. Stellar went down from $0.06 to $0.026. However, its current value sits above the one it had prior to the price drop, at $0.072.
In other words, Stellar experienced a recovery of 121.5%, where XRP’s performance was only half as good.
That doesn’t mean that XLM is out of the woods, however. Due to a red trade volume, XLM/USDT pair seems to be in a downtrend, and technical indicators show that this coin is also heading towards a bearish period. But, the current price does offer some comfort, as it exceeded the 50-day, 100-day, and 200-day moving average. Its biggest supports sit at $0.070 and $0.058.
One explanation for this is the fact that Stellar staking is rather easy thanks to Binance. The annual yield for staking the coin is between 2% and 4% in XLM, which encourages people to keep holding it.