XLM Primed for 35% Surge as Ripple-SEC Settlement Fuels Altcoin Breakout

Stellar's XLM rockets past key resistance—bulls eye a 35% rally as regulatory fog lifts.

The Ripple effect

With the SEC lawsuit now settled, XLM breaks free from its legal overhang. Traders pile in as the altcoin mirrors XRP's post-case momentum—because nothing sparks FOMO like a courtroom victory.

Technical breakout

The chart screams bullish: ascending triangle pattern, surging volume, and a clean break above the 200-day MA. Even Wall Street analysts would nod approvingly—if they weren't busy shorting it.

Just remember: in crypto, every 'game-changing' legal resolution gets priced in before retail finishes their coffee.

Ripple vs SEC: A Turning Point for Crypto

The dismissal of the Ripple-SEC case marks a pivotal moment in U.S. crypto regulation. Since its initiation, the lawsuit has served as a symbolic battle over whether digital tokens like XRP qualify as securities under U.S. law. With both Ripple and the SEC now stepping away from further litigation, the decision clears the way for Ripple to double down on its global payments infrastructure.

That shift could have a ripple effect on other remittance-focused tokens, especially stellar (XLM), which shares a similar mission.

Stellar and Ripple: Deep Ties and Parallel Paths

Stellar was created by Jed McCaleb, one of Ripple’s original co-founders. Both projects aim to transform cross-border payments by offering faster, cheaper solutions to banks and financial institutions. While the two networks have evolved separately, their price actions often MOVE in sync — especially when regulatory news affects Ripple.

This latest development is no exception. With the legal cloud now lifted from Ripple, attention has turned toward XLM’s potential to ride the same wave of renewed interest and institutional confidence.

XLM Breaks Key Resistance with Volume Surge

At press time, Stellar (XLM) is trading around $0.4626 — up more than 16% in the past 24 hours. More notably, the token has broken out of a major resistance range between $0.40 and $0.45, a zone that previously capped gains for months.

XLM’s trading volume has surged over 200% in the past day, a sign that buyers are stepping in with conviction. The breakout is significant from a technical standpoint, as it marks the end of a prolonged downtrend that started in early 2024.

Between August 2 and August 8, XLM rallied from $0.36 to over $0.46 — a move that has flipped key resistance into support and opened the door for more gains.

Price Targets and Market Sentiment

Market analysts are now eyeing a move toward $0.51, a short-term barrier that could act as a launchpad for further gains. If bulls manage to clear that level, the next target is the November 2024 high of $0.6360 — representing a potential 35% rally from current prices.

Such a move is not out of the question, given the positive sentiment sweeping across the digital asset market. The total crypto market cap has risen over 3.5% to $3.87 trillion in the past day alone, with remittance tokens like XRP and XLM leading the charge.

Confidence is a critical driver in crypto, and Stellar seems to be benefiting from the renewed sense of regulatory clarity. With Ripple now free to focus on its business roadmap, the remittance space may attract fresh capital and user adoption, creating favorable conditions for XLM.

Risks and Key Levels to Watch

Despite the bullish setup, the $0.40–$0.45 zone remains a crucial pivot. If Stellar fails to hold above this range on a daily or weekly close, there’s a risk of price rejection or consolidation. In such a case, XLM could retrace toward the $0.36–$0.38 support area before attempting another breakout.

Still, momentum currently favors the bulls. A clean close above $0.51 WOULD likely attract further buying interest and validate the uptrend continuation toward higher targets.

Broader Implications for Crypto Regulation

The end of the Ripple lawsuit doesn’t just benefit XRP or XLM. It sends a signal to the broader market that clearer regulatory frameworks are emerging. For years, the SEC’s position on digital assets has been a source of uncertainty. Now, with major litigation winding down, developers, exchanges, and investors may feel more confident operating in the U.S. market.

That confidence is reflected in the trading activity we’re seeing across top altcoins. Whether it leads to a full-blown altseason remains to be seen, but for now, Stellar is undeniably in a stronger position than it’s been in months.