Stellar Lumens was previously trending higher above a short-term rising trend line since the third week of September. However, price made a sharp downside break to signal that a downtrend is in order.
Furthermore, a head and shoulders reversal pattern appears to be forming and price is nearing a test of the neckline at the 0.2300 level. A break below this would confirm that a longer-term slide is in the works, possibly lasting by the same height as the chart formation that spans 0.2300 to 0.3000.
For now, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, there’s still a chance for the uptrend to resume. However, the gap between the moving averages is pretty narrow so a downward crossover could be possible anytime soon.
Bulls might still get back in the game as stochastic is just starting to pull up from the oversold region. This signals a possible pullback to the broken trend line support or to the dynamic inflection points at the moving averages. RSI is also indicating oversold conditions and might also be due north soon, so bitcoin might follow suit.
StellarX, which is the decentralized exchange of Stellar, recently went live this year and could still gain some traction as it offers zero-fee trading. In its announcement this week, the company stated:
“This week, we’re happy to say that StellarX is fully open. There’s a lot we still need to do. But we’re excited about what we’ve built.”
Furthermore, the blog post went on to highlight how the exchange could soon be the most popular place to trade in the world, thereby bringing in more volumes and activity for the digital asset down the line. Apart from having no fees, it also lets clients trade virtually anything.