Stellar Lumens recently confirmed a reversal pattern to signal that a selloff is underway, but price might need to pullback from the drop to get more bearish energy. Using the Fib tool on the downside trend line break shows an area of interest around the 50% to 61.8% levels where more sellers might be waiting.
The 100 SMA crossed below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to gain more traction than to reverse. Price could find a ceiling at the 0.2550 level, although it already looks like the 38.2% Fib is keeping gains in check.
Stochastic is heading south to confirm that sellers are in control, but the oscillator is approaching oversold levels to indicate exhaustion. Turning back up could bring buyers in and lead to a bounce higher. RSI is also on the move down and has some room to fall before reaching oversold levels, so sellers could stay in the game for much longer.
StellarX was recently launched but it seems that the digital asset’s reaction was more of profit-taking than anything else. There has been some coverage on the tethering of assets which involves some trust in a third-party, eroding some of the trust and overshadowing the benefits like zero fees.
Keep in mind however that the traditional financial market has thrived despite the need to place trust in a centralized exchange, so there’s a chance that this could be the case for StellarX and no hinder adoption by mainstream traders. Then again, any indication that there’s lack of faith in the third-party issuing the tethered tokens could prevent users from signing up with StellarX and lead to a selloff in XLM as well.