Evaluate the potential of Stellar (XLM) after the latest move from SEC

Stellar (XLM) is currently holding steady around the 0.354 USD mark on Friday, after a drop of more than 6% in the previous session. Notably, this decline occurred even as the SEC ( just approved the Hashdex Nasdaq Crypto Index US ETF – a product that opens the door to mass access to major cryptocurrencies, including Stellar. Although XLM still appears weak in the short term, this coin is approaching a key support zone that could serve as a springboard for a bounce back, as technical indicators are recording a gradual increase in demand from traders.

America passes the first multi-asset spot ETP

Hashdex Asset Management Ltd. )Hashdex( – one of the leading digital asset management companies in the world – along with Nasdaq Global Indexes announced on Thursday that the Hashdex Nasdaq Crypto Index US ETF )NCIQ( will officially expand its portfolio by adding three cryptocurrencies: Ripple )XRP(, Solana )SOL(, and Stellar )XLM(.

This move comes right after the American SEC ) gave the green light to allow ETFs to allocate assets beyond Bitcoin and Ethereum, according to new listing standards. With this addition, Hashdex significantly expands access to the cryptocurrency market for both institutional and individual investors.

"The expansion of NCIQ will help investors access Bitcoin, Ether, XRP, Solana, and Stellar in just one single product, simplifying the way to participate in the rapidly growing cryptocurrency industry," Marcelo Sampaio, co-founder and CEO of Hashdex, shared.

Although XLM fell 6% in Thursday's trading session, being approved by the SEC to participate in the ETF could become a long-term growth driver, bringing Stellar closer to global investors.

Not only limited to ETFs, the Stellar ecosystem is also expanding rapidly. Last week, PayPal officially launched the stablecoin PayPal USD (PYUSD) on the Stellar network, affirming the practical application potential of this blockchain in global payments.

In the derivatives market, Stellar also shows signs of a bounce back. Data from Coinglass indicates that the Long/Short ratio for XLM is at 1 and trending upwards, reflecting the growing confidence of traders in the breakout potential of this cryptocurrency.

Long/Short Ratio Chart XLM | Source: Coinglass## Stellar Price Forecast: XLM approaches the important support zone

On September 18, the price of Stellar (XLM) faced strong selling pressure at the upper trend line of the descending wedge pattern, causing the coin to fall 11.5% as of Thursday. At the time of writing on Friday, XLM is trading around 0.354 USD.

If XLM finds support around the (EMA) 200-day moving average at 0.340 USD – close to the weekly support level at 0.331 USD – this coin has the potential to extend its bounce back, targeting the upper trend line at around 0.381 USD.

XLM/USDT daily chart | source: TradingViewOn the daily timeframe, the relative strength indicator (RSI) is currently at 39, below the neutral threshold of 50, indicating that selling pressure is prevailing. To strengthen the bounce back, the RSI needs to return above the neutral threshold.

On the contrary, if XLM does not hold the weekly support zone at 0.331 USD, the price may continue to fall to the low of July 11 at 0.297 USD.

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