Stellar (XLM) has experienced a 50% price surge over the past 24 hours, making it the top-performing asset during this period. This surge can be attributed to the recent 10-K filing submitted by Grayscale Investments LLC for its Grayscale Stellar Lumens Trust.

At press time, the altcoin trades at $0.45, its highest price point since 2021. However, readings from its daily chart hint at a possible short-term decline. Here is how.

Stellar Lumens Trust Sees Spike in Net Assets

On Friday, Grayscale Investments LLC’s Grayscale Stellar Lumens Trust (XLM) submitted its 10-K filing for the fiscal year ended September 30, 2024. It noted that the trust recorded a 10% uptick in its overall net assets during the financial year considered. 

A 10-K filing is an annual report that publicly traded companies in the US are required to submit to the Securities and Exchange Commission (SEC). It provides an overview of the company’s financial performance. It includes the entity’s audited financial statements, business operations, risk factors, and management discussion and analysis.  

According to the report, the Grayscale Stellar Lumens Trust (XLM), an investment vehicle offering investors exposure to XLM, faced losses. This was due to the token’s price depreciation during the period considered and the fees paid to the trust’s sponsors. However, these losses were offset by the 34,875,230 XLM tokens valued at $3,923 added to the trust. This resulted in a net increase in the trust’s overall assets.

XLM Reacts To the News

The positive sentiment around this filing has resulted in a spike in XLM’s value. Over the past 24 hours, the token’s price has surged 58%, making it the market’s top gainer. As of this writing, the altcoin trades at $0.45, a price last observed in November 2021. 

However, readings from its daily chart suggest that this rally may not continue as XLM has become overbought among market participants. For example, its Relative Strength Index (RSI) is at an all-time high of  92.54 at press time. 

RSI measures an asset’s oversold and overbought market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a correction. On the other hand, values below 30 suggest that the asset is oversold and may witness a rebound. XLM’s RSI reading of 92.54 suggests that it is significantly overbought and is at risk of a pullback. 

Furthermore, XLM’s price trades above the upper line of its Bollinger Bands indicator, confirming the likelihood of a price correction. 

The Bollinger Bands indicator measures market volatility and identifies potential buy and sell signals. It consists of three main components: the middle band, the upper band, and the lower band. 

When the price trades above the upper band, it suggests that the asset is overbought. This means that the asset’s price has moved significantly higher than its average price and is at risk of a pullback in the near term.

XLM Price Prediction: Token May Shed Recent Gains

Once buyer exhaustion sets in, XLM’s price is at risk of shedding some of its recent gains. According to its Fibonacci Retracement tool, if this happens, its price target will be the support level formed at $0.35. If the bulls fail to defend this level, the token’s price may drop further to $0.23. 

On the other hand, if buying pressure intensifies, the XLM token price will continue its uptrend and attempt to breach $0.52, a high it last reached in May 2021.

Donald Trump, the President-elect of the United States, has nominated Scott Bessent as Treasury Secretary for his administration. This decision has generated enthusiasm in the emerging industry due to Bessent’s pro-crypto reputation.

Bessent and Cantor Fitzgerald CEO Howard Lutnick had been considered strong favorites for the position. However, Lutnick was eventually nominated as Commerce Secretary.

Crypto Industry Welcomes Scott Bessent’s Nomination for Treasury Secretary

In a November 22 announcement on Truth Social, Trump praised Bessent as the ideal candidate to support his administration’s economic goals. The President stated that Bessent will play a pivotal role in strengthening the US economy, fostering innovation, and maintaining the dollar’s status as the global reserve currency.

“Scott will support my policies that will drive US competitiveness, and stop unfair trade imbalances, work to create an economy that places growth at the forefront, especially through our coming world energy dominance,” Trump added.

Wall Street veteran Bessent, who founded the international macro investment company Key Square Group, brings extensive experience to the role. He had previously served as the chief investment officer for the prominent investor George Soros.

While President Trump’s announcement did not directly reference cryptocurrencies, many in the digital asset space view Bessent’s appointment as a positive sign. In past statements, Bessent has described crypto as a symbol of financial freedom. He also called Bitcoin an alternative investment for younger investors disillusioned with the traditional financial system.

“I have been excited about the president’s embrace of crypto and I think it fits very well with the Republican Party, crypto is about freedom in the crypto economy is here to stay,” Bessent stated.

His pro-crypto stance has led many to believe his leadership could encourage a more balanced approach to digital asset regulation. This would contrast with the outgoing administration’s enforcement-heavy tactics, such as its controversial sanctions on decentralized platforms like Tornado Cash.

Indeed, crypto industry leaders have responded enthusiastically to Bessent’s nomination. Ripple CEO Brad Garlinghouse commended Bessent’s nomination, calling it a win for innovation. He noted that Bessent’s leadership could mark a turning point for crypto-friendly policies in Washington.

Similarly, Kristin Smith, CEO of the Blockchain Association, highlighted the importance of Bessent working with Congress to establish clear regulations, ensure fair tax treatment, and protect self-custody rights for digital assets.

“Critical to this nomination would be working with Congress on a regulatory framework for digital assets, protecting the right to self custody, pushing for clearer tax treatment of digital assets, and working closely with industry experts to protect our nation’s security,” Smith remarked.

ADA, the native coin of the Cardano blockchain, has made a significant price breakthrough. It has surpassed the $1 mark for the first time in two years. As of this writing, the altcoin trades at $1.09, a price level last observed in April 2022. `

Over the past 24 hours, ADA’s price has rocketed by 24%, and its trading volume has increased by 131% during the same period. With heightening buying pressure, the Cardano coin price rally is poised to continue.

Cardano Holders See Green

Cardano’s ascent above the $1 price mark has put many of its holders in profit. According to IntoTheBlock’s Global In/Out of the Money indicator, 3.15 million addresses, which comprise 71% of all ADA holders, are “in the money.”

An address is said to be “in the money” if the current market price of the asset it holds is higher than the average cost at which the address acquired those tokens. This means the holder would profit if they sold their holdings at the current market price.

Conversely, 715,230 addresses, which comprise 16% of all ADA holders, are “out of the money.” These addresses would incur a loss if they sold at the current price. Per IntoTheBlock’s data, this cohort of investors acquired their coins when ADA sold above $1.40.

Notably, with many addresses now holding unrealized profits, long-term holders (LTHs) of ADA are repositioning, potentially to secure gains. This activity is reflected by the spike in ADA’s age-consumed metric, which, per Santiment’s data, skyrocketed to a monthly high of 86.91 billion on November 22, when the uptrend began.

This surge is notable because long-term holders rarely move their coins around. When they do, it often hints at a shift in market trends. Therefore, as in ADA’s case, if the spike is accompanied by increased trading volume and positive price action, it suggests that long-term holders are taking profits. This may fuel further price increases as new buyers enter the market.

ADA Price Prediction: The Upward Trend Is Strong

On the daily chart, ADA’s Aroon Up Line is at 100%. The Aroon indicator measures the strength and direction of a trend. When the Aroon Up line is at 100%, it indicates a strong upward trend, suggesting a recent high and a potential continuation of the bullish momentum.

If this holds and new demand continues to enter the market, the Cardano coin price rally will continue toward $1.24, a price high it last reached in March 2022.

On the other hand, if profit-taking intensifies and buying pressure weakens, ADA’s price may fall to retest support at $1. Should this level fail to hold, the downtrend will be confirmed, and ADA’s price will plunge to $0.85.