XLM surges by 15% within 12 hours following Ripple SEC announcement
In a significant turn of events for the cryptocurrency market, Stellar (XLM) has experienced a notable price increase, reaching $0.4644 – a 15% surge in the past 12 hours. This uptick follows the U.S. Securities and Exchange Commission (SEC) dropping its lawsuit against Ripple, a decision that has had a ripple effect on the market, particularly for Stellar.
The end of Ripple’s legal battle, which involved the SEC’s claim that XRP was an unregistered security, has decreased risk perception for altcoins involved in international payment solutions. Consequently, greater institutional and retail investment has flowed into Stellar, boosting its market capitalization to $14.5 billion.
Market sentiment has improved as investors view Ripple’s resolution as a sign of increasing regulatory clarity. This benefit is particularly evident for Stellar, given its similar utility and positioning in digital cross-border payments.
Stellar’s recent Protocol 23 upgrade, anticipated to make smart contracts on its network faster and cheaper, has also contributed to its rising appeal and demand. This upgrade, scheduled for a mainnet vote on September 3, will bring stronger features for tokenized real-world assets.
Technical indicators for XLM suggest sustained buying pressure, with potential price targets near $0.50 and $0.54. This renewed confidence, triggered by the Ripple-SEC settlement and Stellar’s network improvements, has fueled the price rally.
The Ripple update came as a surprise for many, but it was a much-needed push for Stellar holders. Momentum for XLM is currently on the upside, with all eyes now on follow-through volume heading into the weekend.
It's worth noting that Stellar and Ripple share a history, both having been co-founded by Jed McCaleb. This connection often leads the market to treat the two cryptocurrencies as cousins.
Meanwhile, Ripple's XRP has also seen a price increase, with a 13% jump in 24 hours, reaching $3.36. The trading volume of XLM has spiked to over $1.1 billion in the same period.
Stellar had been consolidating for weeks in a narrow range between $0.39 and $0.42. However, the breakout is backed by real events, making this surge a significant development in the cryptocurrency market. If Stellar holds the current zone and Bitcoin remains stable, a move toward $0.51 or even $0.54 for XLM isn't off the table.
In summary, the SEC dropping its lawsuit against Ripple has indirectly boosted Stellar’s market performance by improving regulatory sentiment, encouraging capital inflows, and creating optimism about Stellar’s technical upgrades and ecosystem growth.
Investors have started to divert their attention and funds towards Stellar (XLM) following the U.S. Securities and Exchange Commission's decision to drop its lawsuit against fellow technology-driven cryptocurrency, Ripple. This increased interest, fueled by regulatory clarity and economic improvements, has led to a significant price surge, pushing Stellar's market capitalization to $14.5 billion. Meanwhile, Ripple's XRP has also experienced a 13% jump to $3.36, indicating a positive impact on the entire cryptocurrency financing sector.
