Stellar

Technical Analysis of Stellar

Stellar is a secure platform designed to provide access to an affordable and open financial system making it easier for users to achieve financial independence. According to some analysts, this platform can be the future of banking because it strives to provide a practical solution to key global issues. Stellar has own cryptocurrency known as Lumens ($XLM) and lots of financial institutions and technical specialists are already supporting the Stellar network. Stellar partners include the likes of IBM, Deloitte, Stripe, NEC Payments, Gramio Technologies, Distributed Lab among others (on the official website, you can find all Stellar partners). This is a highly speculative cryptocurrency and still very risky but lots of analysts agree that XLM is currently at a point where it has the potential to make very big gains. When we look at the 1-year chart we can see that Stellar is moving in “downtrend” and as long as Stellar (XLM) is below $0.30 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $0.08 and $0.15 – If the Stellar jumps above $0.20 that would be a “BUY” signal and the open way to $0.30. If the XLM jumps above  $0.30 that could be a strong signal of the trend reversal and the open way to $0.40. On the other side, if the XLM falls below $0.08 that will be a strong signal “SELL” signal and the next target could be around $0.06.

Advice: This is a highly speculative cryptocurrency and still very risky but XLM has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. Yes, it is true that the price could fall even more but the current price of XLM stands around $0.097 and this is very close to strong support which stands at $0.080. As for the technical picture, XLM remains in bearish phase but if the price advances above $0.30, short-term traders can enter the position with the stop loss at $0.28 and take profit at $0.40 or even $0.50.

Technical Price Analysis of Stellar(Nov.8th)

The Stellar network is a blockchain-based distributed ledger network that connects banks, payments systems and people to facilitate low-cost, cross-asset transfers of value, including payments. Stellar has its native cryptocurrency called lumens, which is denoted by the symbol XLM. Stellar is founded by a non-profit organization called Stellar.org and was founded by Jed McCaleb, who also co-founded another popular cryptocurrency, ripple. Although like ripple, Stellar is also a transfer and payment system that connects financial entities with an aim to significantly reduce the transaction costs and time lags. Each transaction has a standard mining fee of 0.00001 lumens.
While Stellar resembles most decentralized payment technologies like bitcoin, its key distinguishing feature is its consensus protocol. The present-day Stellar is a result of a 2014 fork that created the Stellar Consensus Protocol (SCP) following which Stellar became an open-source system. Under this protocol, the transaction authentication process is confined to a select set of trustworthy nodes rather than being left open to the whole network of nodes. Each node on the network selects a set of such trustworthy nodes, and a transaction is considered approved once authenticated by all nodes that are part of this select group. This shortened approval cycle allows the Stellar network to process transactions faster and keep transaction costs lower.
Stellar supports a distributed exchange model, which allows a user to send payment in a particular currency (like EUR) though they may be holding USD credit. The network automatically performs the forex conversion at the best available rates. The receiver can withdraw the EUR equivalent through the partner institute like a bank.
Popular cryptocurrencies like Bitcoin and EOS were sliding whereas coins like Ethereum, XRP were basking in the bull’s shadow and while Stellar Lumens witnessed a steady rise. Stellar Lumens was rising by 1.40% with a total market cap of $4.864 billion. The cryptocurrency was trading at $0.258 with a 24-hour market volume of $58.253 million. The cryptocurrency which was maintaining its 6th position on the cryptocurrency charts was slowly gaining on the market cap of EOS, which was holding at $5.23 billion.
Binance held the majority of the XLM trade volume which stood at a staggering 19.59% for the XLM/BTC pairing and 15.38% for the XLM/USDT pairing. The trade volumes for both the pairings stood at $11.55 million and $9.07 million respectively.
Stellar has been one of the few popular cryptocurrencies that have maintained a steadfast position on the price charts, with the prices fluctuating between $0.2502 and its current price of $0.2579.
With the way the stock is plummeting, I would advice a quick buy as the currency is heading to the zenith.

Technical Analysis of Stellar(Nov.8th)

Stellar is a secure platform designed to provide access to an affordable and open financial system making it easier for users to achieve financial independence. According to some analysts, this platform can be the future of banking because it strives to provide a practical solution to key global issues. Stellar has own cryptocurrency known as Lumens ($XLM) and lots of financial institutions and technical specialists are already supporting the Stellar network. Stellar partners include the likes of IBM, Deloitte, Stripe, NEC Payments, Gramio Technologies, Distributed Lab among others (on the official website, you can find all Stellar partners). This is a highly speculative cryptocurrency and still very risky but lots of analysts agree that XLM is currently at a point where it has the potential to make very big gains. When we look at the 1-year chart we can see that Stellar is moving in “downtrend”. As long as Stellar (XLM) is below $0.30 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $0.22 and $0.28 – If the Stellar jumps above $0.28 that would be a “BUY” signal and the open way to $0.30. If the XLM jumps above  $0.30 that could be a strong signal of the trend reversal and the open way to $0.34. On the other side, if the XLM falls below $0.20 that will be a strong signal “SELL” signal and the next target could be around $0.18.

Advice: This is a highly speculative cryptocurrency and still very risky but XLM has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. Yes, it is true that the price could fall even more but the current price of XLM stands around $0.25 and this is very close to strong support which stands at $0.20. As for the technical picture, XLM remains in bearish phase but if the price advances above $0.30, short-term traders can enter the position with the stop loss at $0.28 and take profit at $0.34 or even $0.5.
 

Trading Strategies for Stellar

Trading Strategies for Stellar
Stellar is an open platform specifically meant to build financial products that connect people everywhere using blockchain technology. The tokens used in this network are called Stellar Lumens also referred to as XLM, which is its ticker symbol. A transaction using Lumens costs 0.0001 XLM. Today, XLM has a market cap of $7.5 billion, making it listed in the top 10 cryptocurrencies worldwide by the total market cap.
One can place exchange orders on the public ledger to sell other currencies or buy them at will. The rates are determined by the person placing the order before any transaction is made.
On the trading approach, swing trading may be considered as a good alternative when reading the Stellar chart more so by traders who don’t have the patience to hold cryptocurrencies. Swing trading cryptocurrency will allow you to hold positions up to 3 weeks. There is no need to use a particular indicator, but it is important to have the ability to identify a chart pattern and major support and resistance levels. Here, all we need is a Double Bar Low Higher Close (DBLHC) pattern. To identify it, look for two bars that have equal lows or near the same price level. Also, the 2nd candle should be way higher than the 1st one.
Steps to consider when trading Stellar (buy trade):

  1. Find a bullish trend or wait until the market develops a swing low.

The DBLHC can be found at the end of a bearish trend and the start of a new bullish trend acting as a reversal bullish pattern. However, the pattern can develop at any stage during a bullish trend. Having a prior established trend increases the chances of the pattern to work. If it develops right after a swing low is created then we already have a confirmation that the institutional money is buying low.

 

  1. Wait until the DBLHC chart pattern develops on the Stellar XLM chart.

It will now be easy to spot a DBLHC pattern as we have discussed it earlier. It has two identical lows, and the 2nd candle is way higher than the 1st.

  1. Enter the market.

You can choose to enter the market either immediately the DBLHC pattern has been formed or by placing a buy limit order above the high of the 2nd candle.

 

  1. Place a protective stop loss below the DBLHC low.

After buying the XLM coin, the protective stop loss can be placed below the DBLHC low.

  1. Define a take profit level for buying XLM.

Take profits as soon as the Stellar XLM price breaks and closes below the upward trend line.

 
The same rules apply for the sell trade but in reverse.
 
References:

  1. (Forex Trading, n.d.)
  2. (Day Trading, n.d.)
  3. (Captain Altcoin, n.d.)