July 20, 2024

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Stellar Buyers Must Check Out These Data Before Going Long

2 min read
Stellar Buyers Must Check Out These Data Before Going Long

Stellar is one of the cryptocurrencies that had an interesting and fruitful 2021, perhaps why the altcoin is making positive noise these days for being a viable asset for long trading.

  • Stellar could enter a dull phase on the coming sessions
  • XLM is -10.1% over the past week
  • Stellar is on an extended bearish momentum

In crypto space, long trading involves buying an asset and making profit as its price increase. On the other hand, short trading happens when one sells a borrowed security and buys it back at a lower price, making income from the decreased value.

Stellar is hot in the eyes of investors looking to earn from long trading as the digital currency’s current price is significantly lower than its 2021 levels.

Given the virtual coin’s ability to increase its price tremendously, its easy to understand why investors might pick Stellar for their long trading scheme.

But, as with other ventures, it would be wise to pay close attention to XLM’s price movement first, before putting sizable investment on it and deciding to play the long game.

Stellar Price Analysis and Trajectory

After a spectacular showing in May 2021 when it attained multiple yearly highs, Stellar has fallen into a gradual bearish rally and is positioned in trendline resistance for over 17 months now.

Source: TradingView

At press time, data from Coingecko shows the crypto is trading at $0.113 and is down by 10.1% over the past week. On a year-to-date comparison, Stellar is – 68.8%.

The bearish momentum of the crypto market hit XLM very hard as its price fluctuates between $0.09 and $0.1 which has been its support range for the past 22 months.

As different metrics such as 20 and 50 EMA and Relative Strength Index indicating the asset could be looking at a dull phase in the coming sessions, investors looking for long trading might have problem gaining the kind of profit they expect.

Stellar’s Superb 2021 Showing

As mentioned earlier, XLM had an impressive run in 2021, ending up as one of the most watched out digital assets of the year.

After starting 2021 with a price of $0.133, the crypto wasted no time as it increased its value by 224% during the first week of January to trade at $0.432.

The following month, Stellar successfully completed a bullish rally as it hit $0.6. But the asset wasn’t immune to the volatility of its space, as it experienced price dump before bouncing back on April 14 when it changed hands at $0.689.

The month of May proved to be even better for the crypto, as it notched a higher trading price of $0.791 on the 17th.

But Stellar suddenly appeared to have used up all its momentum as its price declined over the months that followed.

XLM total market cap at $2.9 billion on the daily chart | Featured image from CoinLive, Chart: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.