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Stellar (XLM) has, in the last 24 hours, jumped by over 3% in price as the asset outperforms the broader cryptocurrency market. The coin looks likely to hit the $0.40 price level if it is able to sustain the current momentum.
Stellar's path to $0.40 depends on market sentiment
However, for Stellar to hit $0.40, the asset needs to overcome investors' reluctance to engage with it. This is despite a recent boost to XLM following a generic nod by the Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF).
Notably, the SEC has given the green light to Hashdex Nasdaq Crypto Index under its new generic listing standards. Many market participants believe this will open the way for more institutional adoption of Stellar, a development that could positively impact price.
As of this writing, the trading volume remains deep in the red zone, down by 31.98% at $196.35 million. If investors rekindle their interest and actively engage in buying XLM, it could easily flip the $0.40 target.
Stellar is currently changing hands at $0.3597, which represents a 1.75% increase in the last 24 hours. It had earlier hit a peak of $0.364 before slipping due to market volatility. This suggests that it could breach $0.40 if it has enough support from holders.
Worthy of mention is that transactions on the network have become cheaper and faster since the Stellar Protocol 23 Whisk went live early in September. This development might serve to attract more users to the network and possibly boost the price outlook.
Additionally, the institutional adoption of XLM by the card payment giant Visa is another bullish catalyst that could support price growth. Stellar’s utility could increase with the Visa collaboration.
Analysts predict bullish breakout if $0.40 resistance flips
Meanwhile, Ali Martinez, a popular on-chain analyst, has predicted that, based on the "head and shoulders pattern" of Stellar, if a bullish breakout occurs, XLM could target $1. However, to rise to such a height, it needs to find stability above $0.40 and flip $0.50.
This projection depends on the ability of buyers to hold certain critical support levels. The coin would need to breach $0.40 and stabilize above this level while volume soars. A previous 36% spike in volume recently created a notable price increase.
Market observers are keenly watching how Stellar performs in the coming days and if the momentum is strong enough to sustain a bullish rally.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team