Stellar continues to trend higher inside its ascending channel visible on the 4-hour time frame as it tests the resistance. This could allow a pullback to happen before more buyers sustain the climb.
The 100 SMA is still above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the climb is more likely to gain traction than to reverse. These moving averages also line up with the channel bottom around 0.090 to add to its strength as a floor.
Applying the Fibonacci retracement tool also shows that the 61.8% level lines up with the channel bottom and area of interest. A shallow pullback could find support at the 38.2% level or the 0.097 mark. If any of these levels are able to keep losses in check, price could resume the climb to the swing high or the channel top around 0.106.
RSI is already indicating overbought conditions to show that buyers are tired and that sellers could take over. Similarly stochastic is in the overbought zone to signal that buying pressure is weaker and that bearish momentum could come in play.
The recent surge in Stellar is being attributed to Germany-based media company Börsenmedien AG’s announcement that it will be purchasing stakes in SatoshiPay. This startup has raised over $2 million in funding to this date and utilizes Stellar’s blockchain to enable its micropayment services.
Börsenmedien founder and CEO, Bernd Förtsch, mentioned:
“There’s a gap in between inexpensive content that can be purchased on a pay-per-article plan, without hassle. SatoshiPay’s nano payment solution represents that missing link that fills the gap. We are excited about our stake in SatoshiPay, as well as the upcoming integration of their solution on our websites.”
Increased volumes on Asian exchanges are also seen to be fueling the climb.
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