Stellar is surging for the sixth consecutive day on more than double average volume. The project was started by former Ripple co-founder, Jed McCaleb, after he left the Ripple team after disagreements over the Ripple founders share of the XRP token. Stellar has been among the biggest gainers in the top ten cryptos ranked by market cap along with EOS and Cardano also performing well.
From the gains over the past six days, today’s appreciation has been the greatest and on the most substantial volume. Price action is currently trading around the $0.30 mark well above the 50, 100, & 200EMA. On the MACD, a centreline crossover to the upside is occurring, which could have contributed to some of this upswing – giving traders more reason to take long positions.
A golden cross is occurring on the four-hour chart. The previous two candles have long wicks to the upside, showing there weren’t enough buyers as the price reached the $0.32 range. There is more trading activity at $0.30 for the time being. There are cases to be made for the next significant directional movement being to the upside and claims to be made for the downside.
A lot of technical analysis indicators point to further upward movement, but with six consecutive days of gains and price action trading substantially above the moving averages on the daily, maybe some reversion to the moving averages is due. A reversion to the averages would provide traders looking to go long with a more attractive entry price. At the moment the liquidity is mainly at $0.30 and just under.
The hourly chart further supports a reversion to the mean with the MACD crossing it’s signal line to the downside and the RSI forming lower highs showing buying pressure is backing off.
- Momentum is to the upside. Six consecutive days of green candles and Stellar is one of the highest performing coins in the top ten
- MACD centerline crossover occurring on the daily chart
- Upward moves have been on significant volume which shows there are big buyers behind the move
- Price action trading well above the moving averages, so mean reversion could be due
- $0.32 was rejected with more liquidity at $0.30
- MACD crosses it’s signal line to the downside on the hourly, a bearish signal
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