Stellar’s 40% weekly rally has refocused traders on XRP, where order-book data and rising leveraged interest are fueling speculation about a potential breakout. While XLM has surged out of a prolonged range, XRP remains confined to a tight band, prompting analysts to watch key liquidity levels and market structure for confirmation.
Stellar Rally Rekindles the XRP Correlation Trade
Stellar’s XLM and Ripple-affiliated XRP have a history of moving in tandem, given their shared roots and overlapping use cases in cross-border payments. Analyst Kevin Cage noted that XLM’s breakout follows months of sideways action, whereas XRP has yet to follow. Some traders are eyeing a possible push toward the $1.76–$2.00 area for XRP as early as June if momentum builds.
As of the latest readings cited by market watchers, XRP gained about 2.5% over the past 24 hours but was still down roughly 2.5% week over week and about 5% over the past month. The token was last seen hovering near a $1.23–$1.30 liquidity zone on Coinbase’s spot market.
Order-Book Skew on Coinbase
Analyst Dom (@traderview2) highlighted a notable imbalance on Coinbase’s XRP order book, with buy orders stacked below price appearing significantly larger than sell orders above. On the larger bands, he estimated bids outweigh asks by roughly seven to one. While order books reflect trader intent rather than guaranteed outcomes, such imbalances can make it easier to move price higher than lower under current conditions.
Dom cautioned that these signals are probabilistic. He referenced a prior call in early 2025 where similar readings preceded a substantial Bitcoin drawdown, underscoring that order-book context can matter but does not ensure a specific result.
Leverage Builds on Derivatives Venues
Adding to the bullish chatter, traders monitoring derivatives flow report that new wallets on Hyperliquid have opened sizable XRP long positions with leverage up to 20x, including positions reportedly in the millions of dollars. Elevated leverage can amplify price moves in either direction and often coincides with inflection points when spot demand aligns with derivatives positioning.
Key Levels and What to Watch
Dom’s read of XRP’s current structure suggests the path of least resistance leans upward so long as buy-side depth remains in place and broader market sentiment does not deteriorate. Traders are watching:
- Coinbase liquidity: Whether the $1.23–$1.30 area continues to attract bids.
- Order-book balance: If the bid-heavy skew persists or normalizes.
- Stellar’s momentum: Continued strength in XLM that could reinforce the historical correlation trade.
- Derivatives positioning: Persistence or unwinding of leveraged longs on venues like Hyperliquid.
As always, rapid shifts in sentiment and liquidity can change the setup quickly. For now, XRP traders are looking for confirmation via a clean breakout from its recent range, with eyes on whether XLM’s surge proves a leading indicator.