Stellar has formed lower highs and higher lows to consolidate inside a symmetrical triangle pattern on its 4-hour chart. Price is currently testing the resistance and might be thinking of an upside break, given the recent catalysts.
It has been reported that IBM will debut its Blockchain World Wire through a Stellar-powered system, which would mean stronger demand for this particular coin. This could spur an upside break from the current resistance around 0.2300, leading to a rally that’s the same size as the triangle formation.
However, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that resistance is more likely to hold than to break. Then again, the gap between the moving averages is narrowing to signal a potential upward crossover, which could bring more buyers in. Price has already moved above the 200 SMA dynamic inflection point after all.
RSI is on the move up to signal that there’s some buying pressure left. This oscillator is approaching overbought levels, though, so buyers might be feeling exhausted soon. Profit-taking and allowing sellers to take over might lead to another dip to support. Similarly, stochastic is on the move up but is nearing overbought levels to suggest a return in selling pressure.
According to IBM:
Two financial institutions transacting together agree to use a stable coin, central bank digital currency or other digital asset as the bridge asset between any two fiat currencies. The digital asset facilitates the trade and supplies important settlement instructions.
The use of this blockchain-based payment network in cross-border transactions aims to speed up the process while also lowering costs incurred. IBM has plans to demo this product in October during the Sibos banking conference, and strong support could mean similarly strong gains for Stellar.
Images courtesy of TradingView
