Stellar's XLM token surges by 15% within 12 hours following Ripple's SEC update announcement.
In a significant development for the cryptocurrency market, Stellar (XLM) has experienced a notable surge, with trading volume crossing $1.1 billion in 24 hours. This upward trend has propelled XLM to re-enter the top 20 list of cryptocurrencies by market cap, reaching a current price of $0.4644, an increase of 15% in just 12 hours.
The surge in XLM price is primarily driven by a combination of technical breakout patterns, growing institutional adoption, increased network activity, and positive sentiment spillover following the U.S. Securities and Exchange Commission (SEC) dropping its lawsuit against Ripple (XRP).
Positive Technical Indicators
XLM has broken out from a long-term falling wedge pattern and a bullish pennant formation, classic signals of an impending strong upward move. Momentum indicators like RSI and MACD have turned bullish, and XLM is trading above its 50-day moving average. Analysts target a potential price rally up to around $0.63–$0.64, which amounts to a roughly 40%+ upside from current levels near $0.43–$0.45.
Institutional and Network Growth
Stellar has reached record institutional wallet counts (around 9.69 million active enterprise wallets) and locked value (~$150 million), with thousands of new institutional addresses added daily. This growing adoption fuels confidence in demand sustainability and underpins bullish technical patterns.
Ripple Lawsuit Impact
The SEC dropping its lawsuit against Ripple has created a "ripple effect" of renewed regulatory clarity and optimism for similar cross-border payment protocols like Stellar, which bolsters investor sentiment and fundamentals in the sector.
Approaching Protocol 23 Upgrade Vote
The upcoming Protocol 23 mainnet upgrade—a key milestone—has market participants anticipating enhanced network features, scalability, and competitive positioning within cross-border payments. This fundamental development supports bullish outlooks and has investors positioning ahead of the vote, scheduled for September 3.
With all eyes on follow-through volume heading into the weekend for XLM, the future prospects appear positive. If the breakout sustains and the upgrade vote executes smoothly, potential price targets near $0.63–$0.64 could be reached, possibly setting the stage for new all-time highs later in 2025.
The Ripple update came as a surprise for most, but was a much-needed push for Stellar holders. As both Stellar and Ripple share a history, as both were co-founded by Jed McCaleb, the success of one often influences the other. The market often treats Stellar and Ripple as cousins, and the positive momentum for XLM is a testament to this relationship.
[1] CoinDesk
[2] Cointelegraph
[3] CoinMarketCap
[4] Stellar.org
[5] Stellar.org
Bitcoin, a pioneer in the world of cryptocurrency, might also experience a ripple effect due to the positive developments in the finance sector, following the SEC's decision to drop the lawsuit against Ripple. This decision has bolstered optimism and clearer regulatory guidelines for similar cross-border payment protocols like Stellar and Bitcoin, potentially influencing their technology and market dynamics.
With the upcoming Protocol 23 upgrade for Stellar and the surge in trading volume for XLM, there's growing speculation that technology-focused finance platforms could see increased investment and adoption, which could extend beyond Stellar to impact the likes of Bitcoin as well.
