I think more likely than not, we will continue to see a lot of pressure from the upside as sellers will continue to be involved.
The Stellar market has fallen ever so slightly during the trading session on Wednesday, as we continue to hang about the $0.20 level. The 50 Day EMA is sitting just above and is dipping ever so slightly lower. This suggests that perhaps we will continue to see a little bit of downward pressure. The market has been going back and forth around the $0.20 level for a moment, so it looks like we are trying to figure out where our next move is.
If we were to turn around a break above the 50 Day EMA, the market could go looking to take out the $0.23 level. Breaking above that opens up the possibility of a much bigger move, perhaps reaching the 200 Day EMA. The 200 Day EMA is sitting at the $0.26 level. All things being equal, this is a market that I think sees plenty of resistance above, but it is worth noting that we bounced from a higher level this pastime, so it does suggest that perhaps we are going to see potential momentum come back into the picture.
If we break down below the short-term bounce at the $0.1871 level, then it is likely that we could go to reach the $0.71 level. This area has been important multiple times, so as long as we can stay above the $0.17 level, Stellar has an opportunity to stay somewhat afloat. If we do break down below there, is likely that Stellar will go looking to the $0.15 level, perhaps even further than that. I think more likely than not, we will continue to see a lot of pressure from the upside as sellers will continue to be involved.
The market will continue to be very choppy, so you need to be very cautious about your overall position exposure, and you should pay close attention to the larger markets as the Bitcoin and Ethereum markets tend to have a large effect on what happens, and therefore you need to see momentum in those markets to see the smaller coins such as Stellar takeoff. If they start to sell off quite drastically, Stellar will as well. In the short term, I think it is more or less going to be choppy and sideways, therefore a little bit of patience is going to be necessary going forward.