Stellar Price Analysis: Market Upside Limited Until Bulls Break Above $0.3040


Stellar Price Analysis
Stellar Price Analysis chart source by TradingView

Stellar Price Analysis: Market Upside Limited Until Bulls Break Above $0.3040

Stellar has seen a small price decline totaling -1.79% over the past 24 hours of trading. The cryptocurrency is presently changing hands at a price around $0.2311 on exchanges, at the time of writing, after seeing a further -3.6% price decline over the past 7 trading days.

Key Highlights:

  • Stellar had witnessed a 68% price increase between September 11th – 23rd.
  • The market has pulled back and has slipped below the .5 Fibonacci Retracement.
  • Support levels moving forward; $0.2279, $0.2117, $0.2072, $0.2014, $0.1949, $0.1867.
  • Resistance levels moving forward; $0.2424, $0.2569, $0.2749, $0.2815, $0.2925, $0.3040, $0.3369.

The Stellar project is currently ranked in 6th position in terms of overall market cap across the entire industry. It currently holds a total market cap value of $4.37 billion after suffering a 26% price decline over the past 90 trading days. The 51-month-old project is currently trading at a price that is 72% lower than the all-time high price.

Let us continue to analyze price action for Stellar over the short term and highlight any potential support and resistance areas to watch out for moving forward.

Stellar Price Analysis

XLM/USD – SHORT TERM – 4HR CHART

Stellar Price Analysis
Stellar Price Analysis chart source by TradingView

Analyzing price action from the short term perspective above, we can see that XLM had seen a significant price increase toward mid-September 2018. We can see that price action rose from a low of $0.1809 on the 11th of September 2018 and extended to a high of $0.3040 on the 23rd of September 2018. This was a price increase totaling 68% from low to high.

After placing the high, price action rolled over and started to decline. It continued to decline during October 2018 until finding further support below at teh .786 Fibonacci Extension level priced at $0.2072 during mid-October. As the market approached this level the bulls began to defend the area aggressively causing price action to reverse.

We can see that price action then went on to rally higher until meeting further resistance at the .382 Fibonacci Retracement level priced at $0.2569. The market has recently slipped below the .5 Fibonacci Retracement level as it trades around $0.2346.

Moving forward, if the bers continue to pressure the market lower, we can expect immediate support below to be located at the .618 Fibonacci Retracement level priced at $0.2279. If the bears can continue to penet below this support level then further support below can be expected at the downside 1.272 Fibonacci Extension level priced at $0.2117 followed by the .786 Fibonacci Retracement level priced at $0.2072.

If the bears penetrate below $0.20 then further support below can be located at the .886 Fibonacci Retracement level priced at $0.1949 followed by the downside 1.618 Fibonacci Extension level priced at $0.1867.

On the other hand, alternatively, if the bulls can regather their efforts and push price action higher they will meet immediate resistance at the .5 Fibonacci Retracement level priced at $0.2424. Further resistance above this will then be expected at the .382 Fibonacci Retracement level priced at $0.2569.

If the bulls persist to push the market even higher they will meet more resistance at the .236 Fibonacci Retracement level priced at $0.2749 followed by the 1.414 and 1.618 Fibonacci Extension levels (drawn in green) priced at $0.2815 and $0.2925, respectively. If the bulls continue even further higher to penetrate above $0.3040 further higher resistance above can be found at the long-term 1.272 Fibonacci Extension level (drawn in blue) priced at $0.3369.

Author: Yaz Sheikh
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Post your comment...
Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Follow Yaz @