Most people have never even heard of Stellar Lumens, so I think this is a market which you will continue to sell every time it rallies.
The market for Stellar Lumens has been rather weak for a while, and these last couple of days have not been any different. Stellar Lumens is currently sitting at roughly $0.17, and it looks as if it is ready to go even lower. Ultimately, this market looks as if the sellers will continue to jump in at the first opportunity, as we continue to see tighten monetary policy take money away from the riskier assets.
Stellar Lumens looks as if it is likely to continue to see downward pressure down to at least the $0.15 level, maybe even as low as the $0.10 level. Quite frankly, there is just nothing on this chart that suggests being ready to go higher. In fact, it would have to break above the 50-day EMA to even get a potential buying signal. Keep in mind that this is a market that has been selling for quite some time and as a result, it is very difficult to imagine that suddenly changing.
We are getting to the point now where crypto is starting to differentiate the markets, and even if Bitcoin does rally rather significantly, it may not be enough to lift this market long term. It is going to come down to whether or not the network itself is going to be used, and right now it certainly does not look as if it is the wave of the future. Things of course could change, but crypto is very much in the same vein as the technology stocks were in the late 1990s. The first part of that bubble was that anything related to a “.com” name, went straight up in the air. Eventually, people started to ask questions as to whether or not the companies were making money, or if they were even being used. Once that happened, the bubble popped and then we started to get giants such as Amazon, Google, and others. I think crypto is having a similar moment.
Obviously, Bitcoin will survive. You could say the same thing about Ethereum. Once you get down the list though, you have to ask serious questions. Most people have never even heard of Stellar Lumens, so I think this is a market which you will continue to sell every time it rallies. The next several months will be difficult for crypto unless the Federal Reserve steps away from its tightening of monetary policy. If we were to do that, we may get a short-term bounce.
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