Stellar has been trending higher inside an ascending channel, making higher lows and higher highs. Price is currently testing the resistance around the 0.110 mark and might be due for a pullback to support.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is closest to the channel bottom around the 0.093 level. The 50% level lines up with the mid-channel area of interest around 0.096 that might also attract buyers.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. The gap also seems to be widening somewhat, signaling strengthening bullish momentum.
RSI is heading south, though, so there might be some selling momentum left in play, especially since the oscillator is just about to cross the center line. This means it has some room to fall before reaching the oversold area, so selling pressure could stay in play for a bit longer. Stochastic is also heading lower to signal the presence of selling momentum. This oscillator also has plenty of ground to cover before reaching the oversold region, which suggests that bears could stay in control for a bit longer.
Stellar recently got a strong boost on news about SatoshiPay, but it seems that the momentum is starting to fade as buyers book profits. This development still has a lot of long-term gains to bring for the network platform, so buyers might simply be waiting to increase their positions at cheaper levels.
Besides, the pullback appears to be affecting most cryptocurrencies these days as traders await more concrete updates and signs that interest is picking up. There have also been plenty of geopolitical risks in play that have spurred profit-taking.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.