- Stellar’s price surged by 3%, with the coin targeting $0.40 if momentum holds strong.
- The SEC’s approval of the Hashdex ETF could foster institutional interest, potentially driving XLM’s price higher.
- A decline in trading volume remains a challenge, but increasing market activity could see XLM breach the $0.40 level.
Stellar (XLM) has shown a 3% price increase over the past 24 hours, positioning itself for a potential climb toward the $0.40 level. The cryptocurrency is currently trading at $0.3597, a 1.75% increase during the day. However, for XLM to break the $0.40 barrier, it must overcome investor reluctance, especially in light of ongoing market volatility.
A significant factor driving optimism for Stellar is the recent SEC approval of the Hashdex Nasdaq Crypto Index for an exchange-traded fund (ETF). This approval aligns with new listing standards by the SEC, which many believe could facilitate greater institutional adoption of Stellar. If institutional players take a more active role, the demand for XLM could surge, pushing its price higher.
Volume Decline and Market Activity
Despite these positive developments, trading volume remains a concern. XLM’s volume has dropped by 31.98% in the last 24 hours, with current levels at $196.35 million. A sustained surge in market participation is needed for Stellar to maintain upward momentum. In the event of increased investor interest and buying activity, XLM could quickly surpass the $0.40 mark.
Another potential catalyst for Stellar’s price growth is the recent update to the Stellar Protocol. With the introduction of Whisk in early September, transactions on the network have become faster and more affordable. This improvement could attract more users to the platform, contributing to positive sentiment and, in turn, price growth.
Visa Partnership Fuels Optimism
The recent collaboration between Stellar and payment giant Visa is another encouraging development for XLM. This partnership is expected to boost the utility of Stellar’s blockchain, paving the way for greater adoption. With Visa backing the network, XLM’s prospects in the institutional market seem increasingly promising.
Market analysts have been keeping a close eye on XLM’s price action, with some predicting a bullish breakout if the coin can clear the $0.40 resistance. Popular on-chain analyst Ali Martinez has suggested that XLM could reach as high as $1, provided it maintains stability above $0.40 and builds enough momentum to break past the $0.50 mark. Increased volume will play a crucial role in this price surge.
