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Stellar Prospects – The Decentralized Open-Source Future of Banking?

  • Thomas Hughes
    📈 Price Predictions

    On the weekly chart, we can note that XLM/USD recently broke below the support formed at 0.0185 and has now established new (minor) support at 0.0950.


Stellar Prospects – The Decentralized Open-Source Future of Banking?
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Founded in 2014 by Jed McCaleb and operated by the non-profit organization Stellar.org, Stellar is a blockchain based network that aims to connect banks, people and payment systems in order to create a low-cost, high-speed environment for the transfer of value.

Similar to Ripple, Stellar acts as a cross-border payments system with the goal of reducing transaction fees and allowing the underbanked access to loans, microsavings and cost-cutting. To use their own words: “Move Money Across Borders Quickly, Reliably, And For Fractions Of A Penny”. If all this sounds familiar, that’s because Stellar’s founder, Jed McCaleb, is also the co-founder of Ripple, which is another cryptocurrency focused on the same low-fee, fast transactions across borders model.


Stellar’s native cryptocurrency is called Lumens and the trading symbol is XLM. All three terms are used interchangeably. At launch, the coin was named “stellar” but this was changed later in 2015 to “lumen” in order to distinguish it from the Stellar network itself and from Stellar.org, which is the organization that develops the network.

XLM/USD Technical Outlook – The Big Picture

On the weekly chart we can note that XLM/USD recently broke below the support formed at 0.0185 and has now established new (minor) support at 0.0950. The entire year 2018 was bearish for XLM, but 0.1875 rejected price several times, so it’s recent break is a rather big deal for long term price action.

Stellar Prospects – The Decentralized Open-Source Future of Banking?

The pair is trading below the 100 week Exponential Moving Average and below the long-term bearish trend line, with a Relative Strength Index that’s moving downwards and is not yet oversold. In other words, all clues point towards a continued downtrend for the months to come, possibly moving into 0.07 area which acted as S/R back in May 2017 and into 0.02 area if the former is broken.

The daily chart tells almost the same story as the weekly chart: a major support zone that rejected the price for almost an entire year was successfully broken (0.1875 area), the pair is trading below the 200 days Exponential Moving Average and below a long term bearish trend line.

Stellar Prospects – The Decentralized Open-Source Future of Banking?

The Relative Strength Index on the daily charts was oversold and has shown minor bullish divergence (the price was making a lower low and the RSI was making a double bottom), which already resulted in a small bounce at 0.0950, but it’s clear the buyers lack the strength to follow through and now price is just drifting sideways without a clear bias.

Given the current lack of interest from the bulls and for all the reasons stated above, this is a bearish chart, with the potential to go even lower if we look at things strictly from a technical standpoint. Of course, if Stellar.org announces new partnerships or developments that are genuinely positive, then surely the coin will rise but as long as the price is trading below 0.1875 and below the bearish trend line, the long-term outlook remains bearish.

Daily Chart Support: 0.0950

Weekly Chart Support: 0.0950 followed by 0.07xx

Daily Chart Resistance: 0.1875, bearish trend line

Weekly Chart Resistance: 0.1875, bearish trend line

Most likely scenario: break of immediate support, continued downside pressure as long as resistance is intact

Alternate scenario: re-test of long term support now turned resistance (0.1875); such a move would have to be fueled by fundamental reasons

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    Bulls are not going to pass the baton to bears. When should we expect a market reversal? The following price analysis will help you to answer this question


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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Contents

The cryptocurrency market did not follow the scenario of last week and keeps trading near the zone of local maxima. Since the next pullback has not occurred and the growth continues, we can safely talk about the resumption of the qualitative upward trend.

At the same time, CME data show a decline in interest of investors involvement in Bitcoin futures.


As altcoins have recovered, BTC’s domination rate reduced and now is 52%.

BTC/USD

Technical analysis of Bitcoin shows moving to an important resistance level of $6,000. In the case of continued growth and breakdown of the upper boundary of the channel, we should expect the resumption of a full-fledged upward movement. In this regard, the RSI Prediction Band also indicates bullish tendencies.  

 BTC/USD chart by tradingview

Based on a 4-hour chart technical analysis indicates the formation of the Triangle pattern, which shows that BTC is unlikely to move below $5,250. In the case of the breakdown of the upper boundary of the model and closure above $5,500, one can expect continued growth with a potential goal of $5,700. An additional signal here is the test of the support line on the Relative Strength Indicator (RSI).

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The price of BTC is trading at $5,292.45 at the time of writing.

ETH/USD

The main altcoin synchronously with Bitcoin at night showed positive dynamics, as its price increased by more than 3%. The ETH/USD pair pushed away from the support of the 200th EMA at the level of $155 and rapidly soared above the fast 50th EMA at the area of $165.

ETH/USD chart by tradingview

One more resistance area is located at $174, the break of which will push the asset closer to a psychological zone of $190.00. A breakout of this level will indicate confirmation of a rise in
ETH/USD quotes.

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The price of ETH is trading at $171.63 at the time of writing.

XRP/USD

Among the top 3 coins, Ripple has shown the biggest growth over the past 24 hours. Investors and traders are showing interest in the coin, as its market capitalization has increased by around $300 million over the last day.

XRP/USD chart by tradingview

Taking into consideration a technical point of view, Fibonacci retracement shows a consolidation in the green area (61.8%) at $0.343, which serves a consolidation zone. The RSI indicator does not demonstrate the overbought and XRP has enough strength to conquer one more resistance level at $0.35. If the crypto market continues its bullish trend, Ripple will be able to come back to its previous highs.

The price of XRP is trading at $0.3396 at the time of writing.

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