RE: Correlated10 Apr 2019 12:31
April Outlook For Stellar XLM On Bitcoin Trading Pairs
Apr. 9, 2019 2:34 PM ET|1 comment | About: Stellar USD (XLM-USD), Includes: BTC-USD
The Freedonia Cooperative
The Freedonia Cooperative
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Summary
Stellar has been left behind as the crypto market has made the start of a recovery in 2019.
It's lost room on BTC trading, and is up only 12% in its USD value while the rest of the macro market is up 40%.
Technicals show weak XLM trading on Bitcoin pairs with signs that it will continue to lag.
News from partner IBM might be enough to push it higher, but we haven't seen much so far this year.
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After recovering from its all-time low seen in December 2018, Stellar (XLM-USD) managed to achieve some price recovery in the first three months of the year. However, XLM is now under more selling pressure, brought on by some unexpected bullishness seen in Bitcoin in the last two weeks. So what is the outlook for this pair as we head into the second quarter of 2019?
Fundamental Outlook
The news around Stellar in 2019 has mostly to do with its addition on Coinbase programs — notably the Coinbase Earn program. This utilizes Coinbase's purchase of Earn.com which rewards survey takers and participants with a small bit of cryptocurrency.
Coinbase's current program allows users to take a quiz on Stellar's cross-border payments system to earn XLM for their Coinbase wallet. You can learn more here.
In other news, Stellar devs fixed a bug that users found had left the blockchain exposed. It's good news, but Stellar has still not found footing in the kind of adoption that could bring its value up.
Technical Outlook
Today’s analysis for the XLM/BTC pairing will start from the daily chart. The weekly chart (not shown) does not provide us with much information technically speaking, except that the active weekly candle is bearish, which is a continuation of the bearish end to the market action of the previous week. Therefore, we can safely say in the long term, the sentiment for Stellar Lumens continues to remain bearish, especially as the counter asset in the XLM/BTC pairing continues to have a bullish sentiment.
That said, the daily chart presents some interesting information as far as price retracement action is concerned. The Fibonacci retracement tool was applied from the swing high at the 0.00002973 resistance seen on Feb. 14, 2019, and traced to the all-time low seen on the XLM/BTC asset at 0.00002090. Following this trace, price action has largely seen support and resistance at various times around the retracement levels. Of importance at the present time is the 38.2% Fibonacci retracement area, where price had found support on three occasions last week. The daily candle for Tuesday, April 9, ha