The Stellar market continued to go sideways around the $0.20 level, something that we have been doing since last week. That being said, this is a market that clearly is looking at the $0.20 level as a bit of an anchor, and it is also worth noting that we had formed a massive hammer during the previous week as well. With this being the case, the market is likely to continue looking back at that level as a potential floor. However, if we were to break down below the bottom of the hammer from last week, then it is likely that the market will go even much lower.
At that point in time, we could see Stellar dropping towards the $0.15 level immediately. On the other hand, if we break above the highs of the past week, this is a market that could rally towards the $0.25 level. This obviously will be highly sensitive to whatever happens with Bitcoin and the other major crypto markets. In other words, Bitcoin needs to stabilize and bounce in order to drag the rest of the smaller markets higher, including Stellar itself.
Ultimately, rallies at this point will more than likely go looking towards the $0.25 level, or perhaps even the $0.30 level after that. Obviously, we would need to see a lot of “risk on behavior” for a smaller coin like this to move, but it is fairly well-known so I would not be surprised at all to see money flowing into this market. That being said, it must be kept in the back of your mind just how negative this market has been over the last several months. It is not just a matter of crypto being negative, but this market has been essentially bearish for quite some time. Obviously, if we could somehow break above the $0.30 level, it would change everything, but at this point we need to simply build some type of base. A break above the $0.21 level could be a short-term buying opportunity, as it would show momentum building in the opposite direction. In general, as long as crypto struggles, Stellar is going to do the same, especially as fear is the general attitude of markets around the world, not just in the crypto markets themselves.
