All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Stellar rises nearly 15% in two days as Ripple and SEC file joint case dismissal.
- Open Interest in XLM futures jumps 40%, signaling stronger trader activity.
Stellar price outlook is back in the spotlight. This happened moments after Ripple Labs and the U.S. Securities and Exchange Commission (SEC) agreed to jointly dismiss their case. Notably, the legal update helped push prices higher as traders shifted focus to similar digital assets.
XLM has been one of the biggest threats and competitors of XRP for fast and efficient cross-border payments.
Stellar Price Jumps as Investors React to Ripple Court Update
Market data shows that Stellar (XLM) jumped up by nearly 5% on Friday. This came after a 10% rally on August 7. As reported, the move followed news that Ripple and the SEC had filed a joint request to dismiss their long-running case. The case was in the U.S. Court of Appeals for the Second Circuit.
In addition, this development coincides with Ripple’s recent public statement against the SEC. As mentioned in our previous news brief, Ripple warned the digital asset community that new crypto bills that are in the works could trap tokens like ETH, SOL, and XRP under constant SEC watch.
The Ripple and SEC legal fight remains one of the biggest in the digital asset space. Interestingly, this is another joint move by both parties to end the long-running legal case. As highlighted in our previous news brief, Judge Analisa Torres had earlier rejected their request to revise the penalty terms.
In a rare twist, Ripple and the SEC’s decision to file for dismissal has brought a fresh wave of interest to XRP. This has also helped Stellar, which is often seen as its competitor in cross-border payments. More traders are now taking positions in XLM.
Data from CoinGlass shows that Open Interest for XLM rose by over 40% in just 24 hours, reaching about $434 million. At the same time, many traders betting against the token were caught off guard. Short positions worth around $1.17 million were closed out, while long positions saw just $351,490 in liquidations. This shows that more people were betting on prices going up.
The ratio of long to short trades also rose slightly to 1.0173, meaning more people are buying than selling. Adding to the positive trend, CNF reported earlier that Stellar transactions and stablecoin supply jumped significantly over the past month as investors demonstrate confidence in the blockchain.
Chart signals show room for more gains in Stellar
Looking at the chart, Stellar broke above a falling channel pattern. This usually signals a change in trend. Price has now crossed above a key level of $0.4389. Buyers are now watching the next level at $0.4834. If that breaks, the next target is $0.5166, which was the high seen on July 14.
At the time of writing, the coin was trading for $0.4635, up by 12.45% in the past 24 hours.
It is important to add that as of August 5, CNF reported that Large holders keep accumulating while RSI climbs, hinting at more upside. Some indicators are also turning positive. While the MACD is pointing upward, the RSI is pegged at 76, showing strong buying interest. The 50-day moving average is also moving closer to the 100-day, which could show more strength if the crossover happens.
If momentum slows, XLM could fall back to the $0.4389 area, which now acts as support. Meanwhile, as mentioned in our previous article, the Stellar Foundation introduced Protocol 23, which includes 8 key upgrades ahead of the August vote.
