XRP and Stellar Lumens (XLM) took a sharp hit this week, erasing much of the progress they made last week following the buzz around the GENIUS Act. With no fresh catalysts from Ripple or Stellar, the price drop appears more like a case of investors cashing out while they were ahead.
XRP fell to $3.12, about 15% lower than its monthly peak. XLM didn’t fare any better, sliding to $0.4158, down steeply from its year-to-date high. These aren’t minor swings. We’re talking millions of dollars lost in a matter of days.
A Classic “Buy the Rumor, Sell the News” Situation?
Last week, excitement around the signing of the GENIUS Act sent XRP and XLM flying.
The act, which kicks in on January 18, 2027, was seen as a win for the stablecoin sector. Since Ripple’s RLUSD and Stellar’s payment rails are closely tied to stablecoin usage, the tokens got swept up in a mini bull wave. XRP jumped nearly 100% from its June lows. XLM surged 135%. That’s a serious bounce.
But here’s the thing—nothing else really happened.
There were no press releases, no partnerships, no protocol updates. The price boom came on the back of policy hype alone. Once the news was out and digested, the smart money started heading for the exits.
This week? The air just came out of the balloon.
Price Action Tells the Real Story
If you’ve been watching XRP and XLM charts closely, this wasn’t entirely out of the blue.
XRP is currently forming what traders call a cup-and-handle pattern. The “cup” part looks done, rounded out between $1.6130 and $3.40. Now comes the “handle”—a pullback phase that often shows up before a fresh move higher.
This pattern is popular because it signals continuation, not collapse. But here’s the catch: it needs patience.
The depth of the cup sits around 52%, which gives a projected breakout target around $5.18. That’s almost 66% above current levels. But if you’re expecting a straight shot, you might be disappointed.
XLM? It’s acting like XRP’s shadow. Not shocking, since Stellar was founded by Jed McCaleb, one of Ripple’s original architects. They both target cross-border payments. So when one goes up or down, the other usually tags along.
Crypto Sentiment: Chilly Winds Are Blowing
Zoom out a bit and you’ll see the whole crypto market’s feeling the squeeze this week.
Bitcoin dipped to $117,500, raising eyebrows across exchanges. And it wasn’t just BTC. Solana, Dogecoin, and Tron all slipped over 3% during the same window. This isn’t a Ripple/XLM-specific problem—it’s a broader vibe shift.
A few reasons for the shake-up:
Investors are taking profits after major altcoin rallies.
Concerns about the Federal Reserve’s next interest rate decision are making traders nervous.
General fatigue after a volatile month in both crypto and equities.
Basically, crypto’s lost some of its momentum. Traders are pulling back, watching from the sidelines.
Technical Patterns Offer Mixed Signals
Here’s where it gets interesting for chart watchers.
XRP’s cup-and-handle could be bullish in the long term, but don’t forget that patterns often break. If XRP dips below the $2.70 level during this handle phase, things could get messy.
XLM isn’t following a clean technical pattern right now. It’s moving more like a momentum play—higher highs followed by fast reversals. That’s not ideal for stability.
At the same time, it’s worth noting that both coins have held key support levels for now. This suggests the pullback might not turn into a full-blown downtrend.
Fundamentals Remain Strong, but Timing Is Tricky
Ripple and Stellar haven’t changed at the core. They still operate some of the most practical blockchain systems out there, especially in the payment space. RLUSD continues to gain stablecoin traction. Stellar’s Soroban smart contract upgrade is progressing.
And the GENIUS Act? That’s long-term bullish for both. It validates the use of blockchain in regulated finance. It’s just not immediately impactful.
What we’re seeing now is the lag between policy and adoption. It’s one thing to sign a bill. It’s another to roll out infrastructure and get industry buy-in. And crypto markets—let’s be real—aren’t known for their patience.
Here’s what’s keeping the floor from falling out entirely:
| Coin | June 2025 Low | Recent High | Current Price | YTD Performance |
|---|---|---|---|---|
| XRP | $1.56 | $3.68 | $3.12 | +85% |
| XLM | $0.22 | $0.5152 | $0.4158 | +89% |
