Stellar shot up to being the 9th most capitalized cryptocurrency in the world. A couple of weeks ago this currency was an outlier and no one could even think that it would be pumped this hard and fast.
Of course the ideal entry where you could catch this bull train was after week ending December 3. That is when May’s highs at $0.07 was broken. Afterwards, buyers have been so strong with different levels of resistance as projected by the Fibonacci extension broken.
From recent price action, the 4th level at $0.31 is our immediate support. This support was defined after a bear candlestick was formed by week ending December 24. It wasn’t confirmed though because prices shot up again.
Anyway, I reiterate, “figuring” out tops and pretending to fade defined long term trends is often a dangerous Russian roulette.
In the daily chart, the 20 period MA is our immediate support and in the short term-unless there is a bearish explosion-this level will remain useless in my opinion. Traders would only be keen on measuring the strength of this rally by using the BB and relating it to candlestick position.
As it is, yesterday’s candlestick injected a new wave of buy pressure and as the alignment along the upper BB continues. Stochastics are also bullish and even though they are not the perfect kind turning from the oversold territory, their signals are diverging meaning bull pressure is high.
Since we are looking for short term buy opportunities in our entry chart, any lower low is a buying opportunity.
Because the main support line at $0.31-4th Fibonacci extension line in the weekly chart-is a long way from current prices, the middle BB shall act as our second layer of support. After all, this level has been reliable in the last 5 days. The first level of support is the 61.8% Fibonacci extension level from last week’s high low at $0.51.
Any reversal from this levels mean we enter long. It would be ideal if a buy signal would have been printed.