(MENAFN- Daily Forex) The market in Stellar initially tried to rally but then rolled over to show signs of weakness. This market has been in an absolute selloff for several months, and it looks as if we are ready to go down to the $0.10 level. The $0.10 level is a large, round, psychologically significant figure, and the place where we bounced from previously.

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As long as the crypto markets are soft, it is likely that stellar will get whacked as it is a small market, and one that could end up at zero given enough time. That is not necessarily my prediction, but clearly, it is possible based on what we have seen with risk appetite over the last several months. The $0.15 level has offered resistance recently and will be the short-term ceiling in the market at this point. The market is showing no signs of strength, and quite frankly no signs of hope.

As risk appetite gets eviscerated around the world, smaller crypto markets like this run the risk of going bust. Furthermore, this is starting to look a lot like 1999, when the dot com bubble burst. The markets saw several companies that had no real earnings go to zero and fall apart. I think we are on the precipice of that in the crypto markets as well, as a lot of fraud and lack of utility have been exposed.

If we break down below the $0.10 level, it is likely that we would go looking to reach the eight cents level, followed by the $0.05 level. If we break down below there, it could be thought of as a potential“lottery ticket” in case it picks back up, but more likely than not we will see the entire progress and ecosystem shut down. The market is a disaster at this point, so there is no reason whatsoever to think it is going to change anytime soon. At this point, you have to sell every rally as it occurs. If Bitcoin can start to rally for a few days in a row, then maybe Stellar will have a chance, but until then it is almost an impossibility to get bullish on this market. The momentum looks to be relentless, not only in Stellar, but anything else at this point.

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