Stellar breaks above, but then drops on StellarX announcement.
Updated
On the 28 September 2018, Stellar has launched the zero-fee cryptocurrency exchange StellarX, which was announced by StellarX co-founder Christian in his Medium post. Let’s look a little into the “zero-fee” claim.
In reality, StellarX charges 0.00001 XSL per transaction. However, these fees are being refunded to users once a week, that makes a “zero-fee” claim true. Another important factor is that the exchange is absolutely transparent and all the activity is on StellarX is on-chain, meaning that everyone has access to this information.
This is a huge step forward made by the Stellar, and considering growing list of partnership and real world use cases, there must be room for growth of the XML coin.
From the beginning of the year, Stellar has formed a triangle pattern, rejecting the uptrend and the downtrend trendline multiple times. And on the 20th of September, price broke above the downtrend trendline and above the 38.2% Fibonacci resistance near 4k satoshis. However, the breakout didn’t result in further growth, but quite the opposite.
Taking a look at the price action during the StellarX announcement, XLM/BTC was trading near 4k satoshis resistance level. After several days of inactivity, price went further down, reaching a 3250 satoshis low, where the downtrend trendline was rejected. Considering this price action, it is reasonable to say that the scenario of the “buy the rumors sell the news” was definitely the case. Perhaps nowadays it’s a normal reaction by the market, but the question is what should be expected from XSL now.
StellarX platform seems to be a very good move by Stellar team, and in the long term should result in the price increase of XLM coin. But in a short to medium term, it might consolidate between the 3.2k support and 4k resistance levels.
Still, the chances that the price will increase are very high, especially after price and the RSI oscillator broke above the downtrend trendline, and bounced off the trendline afterwards. Obviously 4k satoshis level must be watched for a breakout, after which further uptrend towards 4.7k to be expected. And finally, if Stellar breaks above 5k, it could be the confirmation of the long term uptrend.
Now on the downside, XLM/BTC potentially could get lower, down to the 2.9 - 3.2k satoshis support area, prior to move up. But, break and close below the 2.9k will likely trigger sell orders, pushing price down to the next support near 2.5k satoshis.
Support:
1. 0.00003200
2. 0.00002920
3. 0.00002650
4. 0.00002500
Resistance:
1. 0.00003910
2. 0.00004790
3. 0.00005010
In reality, StellarX charges 0.00001 XSL per transaction. However, these fees are being refunded to users once a week, that makes a “zero-fee” claim true. Another important factor is that the exchange is absolutely transparent and all the activity is on StellarX is on-chain, meaning that everyone has access to this information.
This is a huge step forward made by the Stellar, and considering growing list of partnership and real world use cases, there must be room for growth of the XML coin.
From the beginning of the year, Stellar has formed a triangle pattern, rejecting the uptrend and the downtrend trendline multiple times. And on the 20th of September, price broke above the downtrend trendline and above the 38.2% Fibonacci resistance near 4k satoshis. However, the breakout didn’t result in further growth, but quite the opposite.
Taking a look at the price action during the StellarX announcement, XLM/BTC was trading near 4k satoshis resistance level. After several days of inactivity, price went further down, reaching a 3250 satoshis low, where the downtrend trendline was rejected. Considering this price action, it is reasonable to say that the scenario of the “buy the rumors sell the news” was definitely the case. Perhaps nowadays it’s a normal reaction by the market, but the question is what should be expected from XSL now.
StellarX platform seems to be a very good move by Stellar team, and in the long term should result in the price increase of XLM coin. But in a short to medium term, it might consolidate between the 3.2k support and 4k resistance levels.
Still, the chances that the price will increase are very high, especially after price and the RSI oscillator broke above the downtrend trendline, and bounced off the trendline afterwards. Obviously 4k satoshis level must be watched for a breakout, after which further uptrend towards 4.7k to be expected. And finally, if Stellar breaks above 5k, it could be the confirmation of the long term uptrend.
Now on the downside, XLM/BTC potentially could get lower, down to the 2.9 - 3.2k satoshis support area, prior to move up. But, break and close below the 2.9k will likely trigger sell orders, pushing price down to the next support near 2.5k satoshis.
Support:
1. 0.00003200
2. 0.00002920
3. 0.00002650
4. 0.00002500
Resistance:
1. 0.00003910
2. 0.00004790
3. 0.00005010
Note
Resistance reached, and rejected so farNote
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