Stellar seems to be forming another reversal pattern, this time a head and shoulders formation on the 1-hour time frame. Price is currently testing the neckline of this formation and might be due for a break soon, confirming that a selloff is about to happen.
The 100 SMA is above the longer-term 200 SMA, though, so the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The 200 SMA dynamic support also lines up with the neckline to add to its strength as a floor. Then again, the gap between the moving averages is narrowing to indicate slowing bullish pressure and a possible downward crossover.
A support break could lead to a slide that’s the same height as the head and shoulders, which spans 0.2400 to 0.2600. A bounce, on the other hand, could lead to another test of the highs at 0.2600.
Stochastic has just pulled up after reaching oversold levels, indicating that buying pressure is returning. RSI also looks ready to move higher, also confirming that a rally might be in the cards.
Stellar continues to make steady progress with adoption by Stellarport, Masmic Platform, Steem Anchor, and Pioneer, which is “an experiment in building an online game for productivity.”
Stellarport recently introduced a number of new markets to trade as well:
We’re introducing a BIG update today. Now, you can trade on many more markets on Stellarport – including non-XLM markets as well.
Check out all the new markets:https://t.co/2uSQKDOYeA
Read more about the new update:https://t.co/JeDwRMvE1Z
— stellarport (@stellarportio) October 19, 2018
Masmic aims to build a platform that “could further the promise of cryptocurrencies to enable easy value transfer using the internet in the same way as information transfer/sharing over the internet is today.”