The Stellar price performance this month has been anything but. At one stage last week, the price of the digital currency had declined 45% from its 2021 highs.
Investors in Stellar are no strangers to the altcoin’s volatility. After a 105% rally in the 3 weeks proceeding the 25th of March, bulls could be forgiven their excitement. Sadly, the euphoria was short-lived. The price has since crashed back to earth in a resounding fashion.
After topping out at a high of $0.68993 on April 4th, the Stellar price is currently trading at $0.4365. In the midst of Thursday’s Cryptocurrency flash liquidation, the price traded as low as $0.3795 before recovering to finish the day at $0.4508.
With traders still reeling from Thursday’s market action, it was no surprise to see a calmer trading environment on Friday. The market traded in a much smaller range between $0.43305 – $0.46071.
With the Stellar price closing below the previous day’s closing level on nine of the last eleven sessions, there remains no doubt that the altcoin may see further downside. A lot, of course, will depend on the performance of the broader market next week. Should we see a continuation of the recent selling in the bigger Cryptocurrencies, it’s likely that liquidation of altcoins will follow.
Since the start of 2021, Stellar has witnessed drops of >45% on 4 separate occasions. Bulls may then be confident to go bargain-hunting after the recent steep discount. The picture in the longer term remains unclear. We can look to the short time frames to provide us with trading opportunities.
On the 4 hour chart, we see overhead resistance at $0.45113. The next level on the upside is the upper band of the descending trend channel at $0.4787. A break if this level on a closing basis could provide a long opportunity, closing the trade as the price approaches $0.5195.
This view would be negated on a close below the upper band of the downtrend channel.