Stellar was previously trading inside an ascending channel with its higher highs and higher lows. However, price already closed below the channel support to signal that a reversal from the uptrend is in the works.
To top it off, price has formed a double top as it failed to break past the resistance at the .1700 mark. Price is currently testing the neckline around .1550 and a break below this support level could spur a drop that’s the same height as the chart pattern.
However, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, there’s still a chance for the uptrend to resume. Price is closing below the 200 SMA dynamic inflection point, though, so this may be an early bearish signal.
RSI is slowly crawling lower so price could follow suit while sellers were in control. Stochastic has already dipped into the oversold region to reflect exhaustion among sellers. The oscillator is starting to turn higher to signal a return in bullish momentum. In that case, price could still make its way back inside the channel to resume the climb or at least test the latest highs.
According to a relative indexing methodology which tracks altcoin prices versus Bitcoin, Stellar has emerged as the strongest performer. Stellar has dipped a mere 7% or a relative price performance index of 0.93, which isn’t as bad compared to other rivals like XRP (RPI 0.46 or a 54% drop), ETH (RPI 0.43 or a 57% drop), and BCH (RPI 0.26 or a 74% drop).
Many point to a breakout year for the Stellar project as one of the reasons that’s keeping this particular digital asset supported. While the entire cryptocurrency marketplace was plagued by a brutal bloodbath in the past couple of weeks, Stellar managed to temper its declines and is currently ranked the top 4 altcoin for now.
Images courtesy of TradingView.