We are in the middle of summer.
Blistering heat and vacation cravings have historically never been an exciting mix for the stock markets.
Low volumes, profit-taking, almost all economic sectors in “pause” before the autumn rally (apart from the tourism and oil sectors, even with the covid, there was a slight recovery this year).
Apart from the anomalous situation of oil, the still interesting one of some airlines and some actions that, as we will see, again break the all-time highs, how is the cryptocurrency market going?
While I am talking to you, the crypto that seems to be placed better among the “big” is certainly Ethereum, which returns above the average at 200, and seems to be heading towards a new bullish phase (which will have to be confirmed with the break of € 2000).
In any case, today I want to bring you a small cryptocurrency, in my opinion very interesting both from a speculative and buy and hold aspect: Stellar (XLM).
After the excellent start of 2021, which lasted until mid-May, we saw the sell-off that led Bitcoin to lose more than 50% and all the smaller sisters followed suit.
However, the support of 0.16 has recently marked a double bottom, from which purchases restarted 3 days ago, marking, especially on July 22, a + 17%.
To have a trend inversion, the price must exceed € 0.25 and then aim to exceed the 200-period simple moving average, after which we will have further confirmation.
The maximum of 0.65 was reached only 3 months ago and this is the double face of the same coin of crypto assets.
Incredible opportunities due to their volatility, but also extreme risk.
Personally, I only use a small part of my portfolio to invest in Ethereum and some altcoins. I believe it is the wisest and smartest thing to do.
As for the targets, once the SMA 200 (blue line on the chart) is exceeded, 0.42 is an interesting level, especially volumetric, while 0.50 will be the real divide to reach and exceed the all-time high of 0.65.
Levels are still far away, but let’s remember the time it took for the price to get to where we are now!
DISCLAIMER: I am not a financial advisor nor a CPA. These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.