The Stellar price performance this month has been anything but. At one stage last week, the price of the digital currency had declined 45% from its 2021 highs.
Investors in Stellar are no strangers to the altcoin’s volatility. After a 105% rally in the 3 weeks proceeding the 25th of March, bulls could be forgiven their excitement. Sadly, the euphoria was short-lived. The price has since crashed back to earth in a resounding fashion.
After topping out at a high of $0.68993 on April 4th, the Stellar price is currently trading at $0.4365. In the midst of Thursday’s Cryptocurrency flash liquidation, the price traded as low as $0.3795 before recovering to finish the day at $0.4508.
With traders still reeling from Thursday’s market action, it was no surprise to see a calmer trading environment on Friday. The market traded in a much smaller range between $0.43305 – $0.46071.
With the Stellar price closing below the previous day’s closing level on nine of the last eleven sessions, there remains no doubt that the altcoin may see further downside. A lot, of course, will depend on the performance of the broader market next week. Should we see a continuation of the recent selling in the bigger Cryptocurrencies, it’s likely that liquidation of altcoins will follow.
Stellar Price technical outlook
Since the start of 2021, Stellar has witnessed drops of >45% on 4 separate occasions. Bulls may then be confident to go bargain-hunting after the recent steep discount. The picture in the longer term remains unclear. We can look to the short time frames to provide us with trading opportunities.
On the 4 hour chart, we see overhead resistance at $0.45113. The next level on the upside is the upper band of the descending trend channel at $0.4787. A break if this level on a closing basis could provide a long opportunity, closing the trade as the price approaches $0.5195.
This view would be negated on a close below the upper band of the downtrend channel.