Stellar Lumens has had a rough go over the last several months, as we continue to see plenty of selling pressure. It should be noted that the $0.20 level has offered resistance, and now it looks like we are ready to pull back even further. The market will continue to see a lot of volatility as expected, but it has so far shown itself to be one that should be sold on rallies.
The market had made a significant low near the $0.16 level, and I think that is probably where we are heading next. The hammer that formed from that level did kick off a little bit of a rally but quite frankly, most crypto is struggling so it is hard to believe that a smaller coin like this one will fare any better. Stellar has been drifting lower at a rather steady pace, so it does make sense that we would see traders hesitant to hang on to this market.
It should also be noted that volume is rather anemic, so that suggests that there is no real interest in owning the coin at the moment. There certainly is no fresh influx of buyers, so one has to think that works against the possibility of rising prices. Beyond that, the crypto has a habit of following what Bitcoin does in general. So you need to pay close attention to what is going on in the Bitcoin market to see what could happen over here.
There is absolutely nothing on this chart that suggests we cannot break down below the lows, so I do think that Stellar Lumens could very well go looking towards the $0.15 level. On rallies, this is a market that should continue to be sold until we can take out the 50 day EMA above, which is currently sitting at the $0.22 region. As long as we stay below there, it is difficult to imagine getting long of this market anytime soon. In fact, this is a market that looks like it has already entered “crypto winter”, so this may be a situation where if you are a longer-term believer in the project, then you may be able to accumulate a large position over the next several months. As long as monetary policy remains tight, it is going to be difficult for smaller coins to attract a lot of trading capital.
