Stellar Price Analysis: Another Consolidation Pattern on XLM/USD

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Rachel Lee

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Stellar has formed lower highs and higher lows to create a symmetrical triangle on its 1-hour time frame. Price is currently hovering around support and might be due for either a bounce or a break.

Price barely made it up to the top of the triangle on the latest bounce, though, so a pickup in selling pressure might be in play. A break below the 0.2 major psychological level could be enough to spur a downtrend for Stellar.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to take place than a rally. The 100 SMA has held as dynamic resistance as well.

Stochastic is moving south so XLM/USD might follow suit. RSI is also turning lower without even hitting overbought levels to signal that sellers are eager to return.



Dollar demand seems to be drawing support again now that trade tensions between the US and China are cooling. Chinese President Xi Jinping offered to lower tariffs on auto products while White House officials expressed willingness to pursue trade talks.

Cryptocurrencies have recently been hit by profit-taking on the looming tax deadline as investors probably want to crunch the numbers on their holdings before reestablishing positions. Still, the mood in the industry has improved after it was reported that several funds are looking to put more funds in cryptocurrencies.

Stellar’s Lightning testnet was already launched earlier this month and even though it managed to keep price afloat, the momentum has been slow. Stellar plans on using Lightning Network technology to improve long-term scalability and security and the beta version is due in October.

Keep in mind, though, that Stellar faces limited liquidity since it is listed in only 79 exchanges whereas other altcoins are in hundreds.

The post Stellar Price Analysis: Another Consolidation Pattern on XLM/USD appeared first on Ethereum World News.

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