Stellar (XLM) is trading around $0.354 on Friday after sliding over 6% in the previous session. The decline came even as the US Securities and Exchange Commission (SEC) approved the Hashdex Nasdaq Crypto Index US Exchange Traded Fund (ETF), which includes Stellar among its holdings. Despite the setback, technical signals suggest XLM is approaching a key support zone that could attract buying interest.
SEC approval boosts long-term outlook
Hashdex Asset Management and Nasdaq Global Indexes announced Thursday that the Hashdex Nasdaq Crypto Index US ETF (NCIQ) has expanded to include Ripple (XRP), Solana (SOL), and Stellar (XLM), alongside Bitcoin and Ethereum. The move follows SEC approval under new generic listing standards, broadening investor access to multiple digital assets in a single product.
Hashdex CEO Marcelo Sampaio said the expansion provides “an easier way to participate in a fast-growing crypto industry,” offering exposure to five of the market’s leading tokens.
Alongside ETF inclusion, Stellar’s ecosystem continues to expand. PayPal recently launched its stablecoin, PayPal USD (PYUSD), on the Stellar network, underscoring the blockchain’s role in real-world payments.
On derivatives markets, sentiment is showing signs of improvement. Data from Coinglass indicates XLM’s long-to-short ratio has risen to 1.0, suggesting traders are positioning for a rebound.
Technical outlook for XLM
XLM was rejected from the upper boundary of a falling wedge pattern on September 18, triggering an 11.5% decline into Thursday. The token now trades near $0.354.
Support is expected around the 200-day Exponential Moving Average (EMA) at $0.340, which aligns closely with the weekly support level at $0.331. Holding this zone could spark a rebound toward the wedge’s upper boundary near $0.381.
The Relative Strength Index (RSI) sits at 39, below the neutral 50 mark, highlighting prevailing bearish momentum. A sustained recovery would require RSI to shift back above 50.
On the downside, a break below $0.331 risks extending losses toward $0.297, the July 11 low.
