Stellar continues to climb as the price is attracted to the top of its symmetrical triangle visible on the daily time frame. Price also found support at the short-term rising trendline to signal that bullish momentum is picking up.
Price is also above the 100 SMA to indicate that bulls have the upper hand, possibly having enough strength to push past the triangle top for a prolonged climb. Note that the triangle pattern spans .1800 to .3800 so the resulting climb could be of at least the same size.
However, Stochastic is already indicating overbought levels to indicate that buyers are starting to feel exhausted. Turning lower could lead to a return in selling pressure and another dip to the triangle bottom around .2200 or the near-term trend line at .2400. RSI has some ground to cover before reaching the overbought zone, indicating that buyers could stay in the game for a bit longer.
Cryptocurrencies have been on solid footing for most of the past week on an improvement in investor sentiment. But while other rivals have given up plenty of ground after the FOMC decision and corresponding dollar strength, Stellar has managed to stay afloat.
There has been a lot of attention on the Stellar and Blockchain $125 million airdrop, which kept investors holding on to their positions. After all, this involved users getting about $25 worth of the cryptocurrency in the largest such giveaway of its kind. The company announced:
Accessible to anyone with a Blockchain Wallet, the first batch of recipients will receive their lumens, Stellar’s native digital currency this week – for free.
Jed McCaleb further explained:
We believe that airdrops are central to creating a more inclusive digital economy. Giving away lumens [XLM] for free is an invitation to communities to design the services they need. Our hope is to eventually have global citizens own and use lumens, in both developing and developed economies.
Images courtesy of TradingView
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