Stellar has formed lower highs and slightly lower lows to create a falling wedge formation on its 1-hour time frame. Price is currently testing the resistance and looks ready for a move back to support around the 0.080 mark.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse. However, price is moving above both indicators as an early signal of bullish pressure. A break past the top around 0.088 could lead to climb of the same height as the chart formation, which spans 0.080 to 0.100.
RSI is heading lower, though, so Stellar might follow suit while sellers have the upper hand and are enjoying bearish momentum. Stochastic has also just made its way down from the overbought zone to indicate that bearish momentum could stay on. These oscillators have plenty of room to move lower before hitting the oversold region.
There haven’t been much updates on the cryptocurrencies front in the past week, which explains the consolidation in the likes of Stellar and its peers. Traders are likely waiting for concrete developments before taking larger positions on these coins.
It doesn’t help that Stellar has been surpassed by BNB on account of the latter’s consistent climb in the past weeks. Still, it’s worth noting that Stellar is keeping on with platform and network developments, including the integration of state channels that would let users complete transactions away from the blockchain.
This is also expected to run alongside the new lightning network slated to be released at some point this year, enabling faster and secured transactions which can be scaled to an advanced volume.