Stellar's XLM surges 10% as Nasdaq plans index addition

Stellar's price (XLM) has surged by 10% this week, rising from the $0.260 support zone, following the news that Nasdaq plans to add XLM to its benchmark index. This decision is pending SEC approval by the end of the year. The optimistic sentiment in the crypto sector has bolstered XLM’s price action, which is currently nearing the upper border of its falling wedge pattern. This technical indicator suggests that XLM could reach the highs seen in Q4 2024 if it successfully breaches this border.

The bullish momentum is not solely based on technical analysis; Stellar's fundamentals are also strengthening. The network's total value locked (TVL) has reached a new all-time high (ATH) of $97.5 million, indicating increased user engagement. Additionally, the stablecoin market capitalization has seen a significant spike, further supporting the bullish outlook and hinting at renewed investor interest and upward price momentum.

Stellar's price gain coincides with growing optimism around the altcoin season and the potential approval of top crypto ETF applications by the SEC in the coming months. This is particularly bullish for XLM, as it does not have an individual ETF like Solana and Litecoin. The next few months are crucial for XLM and other altcoins to rise, as the approval of these ETFs could provide a significant boost to the market.

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On-chain metrics also support the bullish bias for XLM. According to DefiLlama, Stellar’s TVL recently reached a new ATH of $97.5 million, strongly suggesting more users are engaging with the network. The stablecoin market cap has also increased significantly, reaching $680 million at the start of the current week. These metrics indicate a bullish outlook for XLM.

Stellar's leadership is focused on positioning XLM as a leader in payment solutions. In a recent interview, XLM CEO Denelle Dixon emphasized the Stellar Development Foundation's vision of enabling money to move as easily as email, allowing users to conduct cross-border transactions with just a fingertip, regardless of their location. This vision has influenced indices like NASDAQ to acknowledge cryptocurrencies like XLM and give them ETF exposure.

In the short term, if XLM price mirrors top altcoins, it could break above $0.40 and target highs seen in early December 2024. However, this outlook could face hurdles if bears take control below the $0.30 level, potentially causing the price to hit the $0.10 mark. In the long term, the target for this year is up to $0.639 and $0.796. Under extreme bullish conditions on the monthly time frame, the break in the symmetrical triangle could show higher targets, potentially reaching $2 following the break of current all-time highs around $0.93 seen in 2018.