Stellar Lumens in one of the better performers in the last few months. This has mainly been driven by its partnerships in the finance industry, the interstellar news, and its huge potential in asset tokenization. On the strength of these factors, different predictions have placed its end of year prices at anything between $0.30 and even highs of $6. However, one wild card that is not factored in most analysis with regards to Stellar (XLM) is Coinbase.
A few months ago, Coinbase announced that Stellar was one of the coins they were considering for listing. Though there are no dates on when it will happen, a listing of Stellar (XLM) on Coinbase could be the catalyst it needs to push it above a dollar towards the year’s end. Coinbase is one of the largest and most trusted exchanges in the world. That’s why anytime they list a coin, it tends to pump.
The Coinbase effect is quite visible in Ethereum Classic (ETC) which pumped after Coinbase announced its listing. It pumped hard in spite of the fact that the market was overall bearish at the time. In essence, for a coin as fundamentally strong as Stellar, Coinbase listing it before the end of the year would see it pump possibly way above a dollar. Stellar pumped to over $0.30 when the Coinbase news hit the headlines, and it was in a bear market. Confirmation of the same would have a way bigger impact on the market, now that the market is slowly getting bullish again.
From the long-term charts, $1 is very much possible if there is real catalyst giving Stellar a push. That’s because the last announcement of ‘consideration’ by Coinbase pushed Stellar to $0.35 an area where it had faced a significant level of resistance in the past, before it fell back to long-term support at $0.19. If Coinbase confirms listing, buying pressure would most likely push it above $0.35, which is now resistance with the next major resistance at $0.46, a price level it has lagged at in the past. If Q4 starts bullish driven by the positive sentiment in the market right now, then the possibility of Stellar pushing past its all-time highs on the strength of Coinbase would be a reality.
Back to today, Stellar is one of the biggest beneficiaries to yesterday’s massive price pump. Today, it is up by over 7%, and is back above $0.21. That’s an indicator that there strong buying momentum in Stellar at this point, relative to most other cryptos. For day traders, buying into Stellar (XLM) at current price levels is a logical move. That’s because its retracement after yesterday’s massive pump, still saw it hold above $0.20, and it’s currently pushing higher while outpacing the major historical averages mainly the 100, and the 200 MA. That’s an indicator that Stellar is bullish at the moment, and could test a high of $0.219 in the day. That’s the next key resistance level on the 200-day moving average.
However, for an intra-day trade, it would best to wait it out until the price pushes above $0.211 on the 6 hour 100-day moving average, which is also a key resistance. If it breaks above that level, then chances are that $0.219 will be possible in the day. In short, Stellar (XLM) is a good investment both for short-term traders and long-term investors. If Coinbase adds Stellar (XLM) then Q4 of 2018 without a doubt belongs to stellar. It has the fundamentals and the sentiment on its side for some huge gains by EOY. A dollar is pretty much within reach. It traded close to a dollar last year, when it didn’t have the fundamental strengths and market recognition that it has in the market today.
