Stellar had a slightly positive session on Wednesday, but nothing that I would write home about. Ultimately, we are hanging around the $180 level, squeezing between there and the 50 day EMA just above. With this being the case, it is very likely that we will continue to see a lot of choppy behavior, as this is an area that was massive support previously. What was once support then becomes resistance, so they say, and that is a major tenet of technical analysis. Because of this, I think a lot of technical traders are waiting to see what happens next.
As with all crypto, you need Bitcoin to go higher in order to get more risk appetite into the picture. I do not necessarily believe that this is a market you can easily trade, but it does make for a decent investment. We are currently in a downtrend, and that will not change until we break above the 200 day EMA, something that is going to take a lot of work. That being said, I do believe it is possible that we need the big players in the crypto market to start rallying.
If we were to break down below the Monday candlestick, we will more than likely go looking towards $150, where I would anticipate seeing quite a bit of support. That support could have ramifications for a double bottom, but we will not know until we get there. I think over the longer term, we are more than likely going to see quite a bit of noise in this region, but it could also be an area where the market is trying to build a bit of a base in order to accumulate.
We need more of a “risk on” type of attitude around the world for assets such as stellar to do well, as it is an alt coin. This is a lot like a small cap stock for those of you that are more used to equities. While it can do well, it certainly helps if the wider market on the whole is doing well. When you are trading Stellar Lumens, you are stepping out on the risk curve. Because of this, you need to be very patient, and you also need to recognize that you do not necessarily have to buy it all in one trade.
