Stellar is steadily going down. The cryptocurrency does not have such sentiment swings as Bitcoin or other digital coins, Dmitry Gourkovsky, Chief Analyst at RoboForex says. The midterm descending channel is here to stay, with a fresh local low at around $0.40. The current trend may lead Stellar towards $0.13, where the long term demand for the digital coin lies, and this could actually be the limit for the long term consolidation, with a new growth phase ahead.
Another scenario could see Stellar starting an ascending correction phase, with the target of such local uptrend at $0.50. In case this level gets broken out, a long term uptrend may form.
In fact, there’s a directional movement in Stellar now, and with it trading at $0.43 today, the local target for sellers may be at $0.41. Once this target is achieved, the seller pressure will get stronger, but in case the currency stands ground and does not go way much below, the overall outlook could well become positive.
The long term Stellar outlook may also revert to positive after the coin tests the important levels successfully and is above $0.50. Fundamentally, everything stays pretty much the same for Stellar. The overall cool attitude of central banks and other financial institutions towards cryptocurrencies has become even more widespread lately, and this is playing a bad trick on each digital coin individually. Stellar is no exception here, although there’s nothing which is definitely against itself.
After Ripple, with its xCurrent e-payment solution, has announced partnership with global Chinese online stores, there have been talks that Stellar may lose its 7th place in the highest demanded cryptocurrencies rating and head down to the end of the list. While monetary authorities are after regulation and law, business is looking for technology, and, as such, the most demanded asset will be the one with the best techs. This could make Ripple, a platform capable of running cheap and quick overseas transactions, the leader of the industry.
Currently, it is quite important that Stellar owners should use its advantages, as their platform is also capable to run such transactions. If this is the case, then Stellar and Ripple could start developing in quite a synced way.
Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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