- The new Stellar ETF ETP launched by WisdomTree is the first to be launched in Europe and has led to a new institutional attraction toward XLM.
- Analysts anticipate XLM to start gaining strength towards $0.36 because it has solid support at $0.30.
- RSI and MACD are affirming bullish momentum as the open interest in XLM is growing.
Stellar Lumens (XLM) has started to gain momentum again after it rose from the support level at $0.30. The price is improving after the introduction of the physically backed Stellar Lumens ETF by WisdomTree (XLMW).
This has rekindled the interest of investors in this payment-oriented blockchain. Market confidence is established. Hence, analysts are viewing this as a possible factor that could push the token to the 0.36 zone.
WisdomTree Increases Institutional Access
The WisdomTree Stellar ETP exposes the Stellar network to institutional investors in various large exchanges. The product was listed on the SIX Swiss Exchange, Euronext Paris, and Euronext Amsterdam after the prior Deutsche Börse Xetra listing.
The ETP offers direct exposure to the Stellar Lumens spot price. It has one of the lowest management fees at 0.50%, making it one of the cheapest regulated vehicles. Hence, it would appeal to institutional portfolios looking to have safe exposure to this digital asset.
XLM Poised for $0.37 Breakout
Crypto analyst Ali (@ali_charts) updated a bullish technical outlook that XLM would reach $0.37. Therefore, he anticipates the purchasing pressure to be at the $0.30 mark.
His chart depicts that XLM is trading within a downward channel and may soon break out around the first week of November. Ali posted, “At $0.30, we are buying the dip before Stellar rises to $0.37. This helps mark the reward-to-risk for buyers.
Source: X
Support Strengthens Near $0.32
Recent recovery by XLM at $0.302 coincided with support at the areas of 0.618 and 0.786 Fibonacci retracement levels. These are equal to between $0.316 and $0.307. The VWAP (Volume Weighted Average Price) is at $0.3217 presently.
It shows that the current price has been stabilizing beyond a fair-value level point where buyers are also rejoining. A close higher than $0.325 would attest that we have a mid-range breakout.
Also, staying above VWAP would mean that more intraday traders are getting confident. In case the trend continues, Fibonacci extensions have possible upside targets of between $0.36 and $0.37, which aligns with Ali’s projected range.
Fib. and VAWP. Source: TradingView
Also Read | Stellar (XLM) Repeats 2017 Pattern as Market Eyes Breakout Toward $1
The Right Track
The momentum indicators verify that the short-term trend of XLM is improving. The RSI has climbed to 61.6. This is a moderate bullish momentum, although it is not overbought yet. Instead, it is capable of further positive returns before holders start selling for profits.
The MACD has also indicated a bullish crossover. In many cases, this is a forerunner of upward continuation. Together, the two indicators suggest the building of buying pressure as the price stays above short-term moving averages.
MACD and RSI. Source: TradingView
Traders Position for Upside
CoinGlass reports that the derivatives trading volume of XLM declined by 22.28% to $192.49 million, indicating that there’s now less short-term speculation. However, open interest increased by 6.09% to $144.44 million.
This is an indication of more entry positions as opposed to leaving the market. This is a common trend in a market where players expect directional change. Here, the institutional catalysts are the sources of the potential upside.
Source: CoinGlass
Also Read | Stellar (XLM) Eyes $0.385 Target as Bullish Momentum Strengthens
