Stellar Lumens Forecast: Building Base for Recovery
Date
2/7/2022 11:32:31 AM
(MENAFN- Daily Forex) Stellar rallied a bit on Friday as we continue to see the $0.20 level act as a magnet for price. That being said, we are getting close to the top of the short-term range, so if we can break out above the $0.21 level, the market could go looking towards the 50 day EMA above which is closer to the $0.25 level. That being said, the 50 day EMA is drifting lower, and you cannot ignore the fact that Stellar has been somewhat dormant while the rest of the crypto markets have shot higher during the trading session.
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That being said, it is the beginning of an attempt to make a move, so it is very possible that we could go higher, but I think it is going to be a bit of a delayed reaction in this market. In fact, you can say that is already the case, so while I do think that a bounce is coming and a short-term trade is very possible, I anticipate about a $0.05 move in the short term. Short-term pullbacks could be buying opportunities after that breakout , but I think that Stellar has a lot of work to do in order to convince crypto traders to start piling in. After the massive damage that has been done to the crypto world over the last couple of months, alt coins are going to continue to struggle in general.
That being said, both Bitcoin and Ethereum have had explosive sessions, so that might be the first signs of a turnaround in this market. With that in mind, I think it is very likely that we will see the Stellar market move right along with the rest of the markets. If we see a selloff in the bigger markets, Stellar is going to be a victim. The market is likely to see a bit of hesitation, so it is very unlikely that we will see this market simply shoot straight up in the air. Having said that, it might be an opportunity to build up a little bit of a position. However, if we break down below the hammer from last week, that could very well signify that we are going to drop towards the $0.10 level.
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