The market is a disaster at this point, so there is no reason whatsoever to think it is going to change anytime soon.

The market in Stellar initially tried to rally but then rolled over to show signs of weakness. This market has been in an absolute selloff for several months, and it looks as if we are ready to go down to the $0.10 level. The $0.10 level is a large, round, psychologically significant figure, and the place where we bounced from previously.

As long as the crypto markets are soft, it is likely that stellar will get whacked as it is a small market, and one that could end up at zero given enough time. That is not necessarily my prediction, but clearly, it is possible based on what we have seen with risk appetite over the last several months. The $0.15 level has offered resistance recently and will be the short-term ceiling in the market at this point. The market is showing no signs of strength, and quite frankly no signs of hope.

As risk appetite gets eviscerated around the world, smaller crypto markets like this run the risk of going bust. Furthermore, this is starting to look a lot like 1999, when the dot com bubble burst. The markets saw several companies that had no real earnings go to zero and fall apart. I think we are on the precipice of that in the crypto markets as well, as a lot of fraud and lack of utility have been exposed.

If we break down below the $0.10 level, it is likely that we would go looking to reach the eight cents level, followed by the $0.05 level. If we break down below there, it could be thought of as a potential “lottery ticket” in case it picks back up, but more likely than not we will see the entire progress and ecosystem shut down. The market is a disaster at this point, so there is no reason whatsoever to think it is going to change anytime soon. At this point, you have to sell every rally as it occurs. If Bitcoin can start to rally for a few days in a row, then maybe Stellar will have a chance, but until then it is almost an impossibility to get bullish on this market. The momentum looks to be relentless, not only in Stellar, but anything else at this point.

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.

The one thing that this market will need is a little bit of external help, so we will need to keep an eye on Bitcoin and whether or not it can pick things back up.

Stellar drifted a little bit lower on Tuesday as momentum and volatility have evaporated over the last week or so. The market currently finds itself somewhere near the $0.23 level and drifting towards the 50-day EMA underneath. The market has recently seen a significant attempt a breakout, but as the crypto markets have calmed back down, Stellar Lumens will continue to be lackluster until we get excited in this market again.

Looking at this chart, the $0.20 level is a psychological and structurally important level, so I think if we pull back to that area will be interesting to see whether or not buyers continue to go in and pick up value. The market is still technically in a downtrend, despite the fact that we have had a nice little run over the last month or so. That being said, unless Bitcoin and Ethereum take off, smaller coins such as this one will obviously struggle as they are further out on the risk spectrum.

The 200-dnksay EMA sits at the $0.26 level and is drifting lower, but it should be noted that it has softened a bit as of late, as we are starting to get a little bit more along the lines of flat in that indicator. That will be a psychological and structural barrier though because crypto markets do tend to trade very technically. The market could be thought of as a potential flag, but I think that is a bit of a stretch at this point because we have drifted so far to the side.

The market breaking through the $0.20 level opens up the possibility of a move down to the $0.15 level, which would be a continuation of the overall downtrend. The market has been grinding lower for ages now, so even if we do break down from here, then it is likely that we go much lower. Remember, some of these crypto points will go to almost 0, but it does look like there is at least some fight left in this one, so it could turn things around. The one thing that this market will need is a little bit of external help, so we will need to keep an eye on Bitcoin and whether or not it can pick things back up. It did see a nice breakout, but now it simply going sideways.