WisdomTree Launches Stellar ETP as XLM Sets Its Sights on $0.36!

Stellar Lumens (XLM) has started to show positive movement again after bouncing back from the support level of $0.30. The coin’s price started to strengthen after the launch of the physical-based Stellar Lumens ETF (XLMW) by a major asset management firm. This reignited investor interest in the payment system-focused blockchain. Market confidence is starting to build. Analysts therefore see this development as a potential factor that could push the token price towards the $0.36 level.

WisdomTree increases institutional access, XLM ready to break $0.37?

The Stellar ETP provides exposure to the Stellar network to institutional investors across major exchanges. The product has been listed on SIX Swiss Exchange, Euronext Paris, and Euronext Amsterdam, having previously been listed on Deutsche Börse Xetra.

This ETP offers direct exposure to the spot price of Stellar Lumens. With a management fee of just 0.50%, this product is one of the cheapest regulatory instruments available. It is therefore attractive to institutional portfolios that wish to have a safe exposure to this digital asset.

A crypto analyst shared a technical analysis showing a bullish outlook for XLM, which is expected to reach $0.37. He expects buying pressure to be strong at $0.30. In the chart he shared, it can be seen that XLM is moving in a descending channel pattern and is predicted to breakout soon in early November.

The analyst wrote, “At $0.30, we bought on the dip before Stellar rose to $0.37. This helps illustrate the yield to risk ratio for buyers.”

Support Strengthens Around $0.32

XLM’s latest recovery at $0.302 coincided with the support areas at the 0.618 and 0.786 Fibonacci retracement levels, which range from $0.316 to $0.307. Currently, the VWAP (Volume Weighted Average Price) stands at $0.3217. This suggests that XLM price is stabilizing above fair value levels, where buyers are starting to come back in. If the price manages to close above $0.325, this will signal a breakout from the mid-range zone. In addition, staying above the VWAP indicates increased confidence from day traders. If this trend continues, then the price upside targets based on Fibonacci extensions are in the range of $0.36 to $0.37 – in line with the analyst’s projections.

Momentum indicators show that XLM’s short-term trend is improving. The RSI (Relative Strength Index) has risen to 61.6 levels, signaling moderate bullish momentum. Although it has not yet entered overbought territory, there is still room for further upside before investors start taking profits. The MACD is also showing a bullish crossover, which is often an early signal of an uptrend continuation. The combination of these two indicators indicates increasing buying pressure, especially as the price remains above the short-term moving averages.

Traders Start Taking Upside Positions

According to CoinGlass, XLM derivatives trading volume fell by 22.28% to $192.49 million – indicating a decline in short-term speculation. However, open interest rose by 6.09% to $144.44 million. This indicates more new positions are being opened, rather than closed – a common trend when the market anticipates a change in direction. In this context, institutional drivers are the main catalyst for potential price increases.

Disclaimer This content aims to enrich readers’ information. This information is collected from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.