Stellar is one of the cryptocurrencies that had an exciting and productive year in 2021, which is probably the reason why the altcoin is making such a positive buzz these days that it is a viable asset for long trading.
- Stellar could get into a boring phase in the upcoming sessions
- XLM is -10.1% over the past week
- Stellar in extended bearish momentum
In the cryptocurrency space, long trading involves buying an asset and making a profit as its price increases. On the other hand, short trading occurs when one sells a borrowed security and buys it back at a lower price, making income from depreciation.
Stellar is hot in the eyes of investors looking to profit from long-term trading because the current price of the digital currency is well below 2021 levels.
Given the virtual currency’s ability to significantly increase its price, it is easy to understand why investors chose Stellar for their long-running trading scheme.
But, as with other projects, it would be wise to pay close attention to XLM’s price movement first, before placing significant investments on it and deciding to play the long game.
Excellent price analysis and path
After a spectacular show in May 2021 when it reached multiple annual tops, Stellar has fallen in a gradual downtrend and is being positioned at trendline resistance for over 17 months now.
At the time of publication, the data from Koenigku It shows that the cryptocurrency is trading at $0.113 and is down 10.1% over the past week. By comparison year-to-date, Stellar’s rate is 68.8%.
Hitting the bearish momentum of the cryptocurrency market XLM Very difficult as its price fluctuates between $0.09 and $0.1 which has been its support range for the past 22 months.
Since various metrics such as the 20 and 50 EMA and the RSI indicate that the asset may be looking at a dull phase in the upcoming sessions, investors looking for a long trade may have trouble taking the kind of profit they expect.
Stellar’s Superb 2021 Show
As mentioned earlier, XLM performed impressively in 2021, ending up as one of the most-watched digital assets of the year.
After starting 2021 at $0.133, the cryptocurrency wasted no time as it increased in value by 224% during the first week of January to trade at $0.432.
In the following month, Stellar successfully completed a bullish rally, reaching $0.6. But the asset was not immune to the volatility of its space, as it suffered a dumping in prices before rebounding again on April 14 when it was trading at $0.689.
May proved to be a better month for cryptocurrencies, with a higher trading price of $0.791 on the 17th.
But it suddenly appeared as if Stellar had exhausted all of its momentum as its price plummeted over the ensuing months.
XLM total market cap at $2.9 billion on the daily chart | Featured image from CoinLive, Chart: TradingView.com Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.