Stellar Continues to Drift Lower

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The one thing that this market will need is a little bit of external help, so we will need to keep an eye on Bitcoin and whether or not it can pick things back up.

Stellar drifted a little bit lower on Tuesday as momentum and volatility have evaporated over the last week or so. The market currently finds itself somewhere near the $0.23 level and drifting towards the 50-day EMA underneath. The market has recently seen a significant attempt a breakout, but as the crypto markets have calmed back down, Stellar Lumens will continue to be lackluster until we get excited in this market again.

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Looking at this chart, the $0.20 level is a psychological and structurally important level, so I think if we pull back to that area will be interesting to see whether or not buyers continue to go in and pick up value. The market is still technically in a downtrend, despite the fact that we have had a nice little run over the last month or so. That being said, unless Bitcoin and Ethereum take off, smaller coins such as this one will obviously struggle as they are further out on the risk spectrum.

The 200-dnksay EMA sits at the $0.26 level and is drifting lower, but it should be noted that it has softened a bit as of late, as we are starting to get a little bit more along the lines of flat in that indicator. That will be a psychological and structural barrier though because crypto markets do tend to trade very technically. The market could be thought of as a potential flag, but I think that is a bit of a stretch at this point because we have drifted so far to the side.

The market breaking through the $0.20 level opens up the possibility of a move down to the $0.15 level, which would be a continuation of the overall downtrend. The market has been grinding lower for ages now, so even if we do break down from here, then it is likely that we go much lower. Remember, some of these crypto points will go to almost 0, but it does look like there is at least some fight left in this one, so it could turn things around. The one thing that this market will need is a little bit of external help, so we will need to keep an eye on Bitcoin and whether or not it can pick things back up. It did see a nice breakout, but now it simply going sideways.

XLM/USD

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