The Securities and Exchange Commission (SEC) approved HashDex’s multi-asset Crypto ETF on September 25th, expanding investor access to Stellar (XLM). However, tokens have fallen by more than 6% since a week ago, and are currently trading nearly $0.36. Can Hashdex ETFs increase XLM prices? Let’s analyze it.
ETF approval expands market access
Hashdex’s Nasdaq Crypto Index US ETF is the first multi-asset spot cryptographic product approved in the US. This exposes investors to Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Stellar (XLM).
Exchange-Traded Funds (ETFS) allow investors to purchase stocks in a basket of assets without directly holding them. In this case, HashDex ETFs now include StellAR in parallel with other major cryptocurrencies.
This is because institutional investors, such as funds, banks, and retirement accounts, prefer regulated products such as ETFs to purchase tokens directly. Hashdex CEO Marcelo Sampaio said the expansion “provides a way for investors to easily join the rapidly growing crypto industry.”
For the star, inclusion can mean stable demand from large investors over time. However, ETFs do not guarantee short-term price increases, particularly when market conditions are weak.
XLM chart signals $0.35 as make or break level
Stellar (XLM) is traded within a descending triangle. This is usually a pattern that shows integration before breakout. The top of this pattern is close to $0.45 and acts as a resistance, with a base of about $0.35 and acts as a support.
On September 25th, XLM prices fell by more than 6%, touching on this support zone. On September 26th, the token rebounded to $0.3599, indicating that buyers are following the level for at least now.
The 200-day Exponential Moving Average (EMA) tracks long-term trends is also close to $0.34. This means that the $0.34-0.35 range is a stellar make-up or break area. If this range is kept, traders can revert the price to $0.40-$0.45. A successful breakout of over $0.45 will disable the descending triangle and open a pass up to $0.50.
However, if the $0.35 level fails, sales pressure could reduce the XLM price to $0.30, which has not been tested since the beginning of the year.
The Relative Strength Index (RSI) at the age of 43 now offers more context. An RSI value below 30 indicates overselling conditions and an excess level of signals above 70. At 43, Stellar is in a neutral zone, suggesting that tokens have room to fall before they are sold too much. However, this leaves room for rebound if the buyer intervenes.
On-chain growth accelerates with record surges in TVL and contracts
Stellar’s total locked (TVL) hit a record high in September, surpassing the $145 million locked to the protocol. This is twice the number from the previous quarter, indicating a strong user confidence in staking, lending and liquidity delivery.
Smart contract use also skyrocketed, with over 1 million contract calls recorded per day in September. These contracts underpin the integration with payments, Defi applications and traditional systems, demonstrating the network’s movement towards real adoption.
Institutional interest in the stars increased in September. Mercado Bitcoin has announced $200 million tokenized financial assets at Stellar, while Redswan Digital Real Estate has added $100 million tokenized real estate. PayPal launched Stablecoin Pyusd on Stellar, bringing the blockchain into a mainstream payment use case.
Stellar’s foundations – ETF inclusion, Record TVL, growth of smart contracts, institutional adoption, and Protocol 23 upgrades – all show strong long-term potential. However, tokens are under pressure in the short term, and market sentiments are still driving daily movements.
If XLM can protect support at $0.35, broader exposure via HashDex ETFs and ecosystem growth could drive recovery. However, breakdowns below this level could extend the reduction to $0.30 before the buyer returns.
Stay tuned for future coverage as we track whether XLM holds $0.35 in support and how HashDex ETFs shape their next move.