Stellar was one of many cryptocurrencies to have a fruitful and interesting 2021. This may explain why this altcoin has been making positive noise for its ability to be a long-term trading asset.
- On the upcoming sessions, Stellar may enter a boring phase
- XLM was -10.1% during the week
- Stellar continues to be bearish
Long trading is the act of buying assets and making profits as they rise in price. Short trading, on the other hand is when one borrows security but then buys it back for a lower amount, earning income.
Stellar is hot in the eyes of investors looking to earn from long trading as the digital currency’s current price is significantly lower than its 2021 levels.
Given the virtual coin’s ability to increase its price tremendously, its easy to understand why investors might pick Stellar for their long trading scheme.
But, as with other ventures, it would be wise to pay close attention to XLM’s price movement first, before putting sizable investment on it and deciding to play the long game.
Trajectory and Stellar Price Analysis
Stellar experienced a stunning showing in May 2021, when it reached multiple yearly highs. However, Stellar fell into a slow bearish rally. It is currently in trendline resistance and remains there for more than 17 months.
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Data from CoingeckoThe crypto trades at $0.113, and has fallen by 10.1% in the last week. On a year-to-date comparison, Stellar is – 68.8%.
XLM has suffered from the bearishness of crypto markets as it fluctuates between $0.09- $0.1, the same support area for 22 months.
Investors looking to make long-term profits might face difficulties obtaining the type of return they desire due to the fact that different metrics, such as Relative Strength Index and 20-50 EMA could indicate an asset is in a boring phase.
Stellar’s Superb 2021 Showing
As we mentioned, XLM enjoyed a remarkable run in 2021 and ended up being one of the most viewed digital assets of the year.
The crypto gained 224% in the first week of January after starting 2021 at $0.133. It traded at $0.432 by the end of the second week.
Stellar experienced a bullish rally that culminated in it hitting $0.6 the month after. But the asset wasn’t immune to the volatility of its space, as it experienced price dump before bouncing back on April 14 when it changed hands at $0.689.
Crypto traded at $0.791 higher on May 17th, making it even more popular.
Stellar seemed to suddenly lose its momentum, as the price of Stellar plummeted over the following months.
XLM's total market cap is $2.9 billion according to the daily chart. Featured Image from CoinLive. Chart by TradingView.com| Featured image from CoinLive, Chart: TradingView.com Disclaimer: This analysis should not be taken as investment advice.