If the XLM position appreciates, the trader can sell in profit back to XRP, growing their stack. If the trade goes sour, one can choose to continue holding the XLM on spot instead of capitulating, and to look forward to its coming appreciation against USD and then cash out to stablecoin/fiat. Both XRP and XLM are good coins to hold, and while I personally prefer XRP, having XLM in my holdings isn’t a bother.
My sentiment is that XLM /USD will probably see greater potential positive price movement before the switch is flipped on XRP/USD (SEC lawsuit delays, bigger project taking more time to spin up to adoption), after which XRP will leave most other remittance and iso 20022 coins in the dust.
Since my overall goal is to continue stacking XRP, this type of trade is a lower risk way to get exposure to the market fluctuations and attempt to profit off these movements with the goal of growing my XRP holdings.
I am estimating that the sell pressure on this pair from the past week or two is going to diminish shortly. I’ve entered the long position at the bottom of this triangle shape (~0.375) and will monitor the changing conditions to adjust my take profit level depending on how the price moves with . If the trade goes south and XRP outperforms XLM like it did shortly during the recent BTC rally, I will simply hold the XLM on spot. I used approximately 12.5% of my total XRP stack for this position, and won’t be opening any more trades with those holdings until this one is complete.