A recent report from the some top fintech leaders has predicted Stellar Lumens (XLM) to be one of the biggest gainers in 2019. The report predicts that Stellar will rise by a total of 84% by February 1, 2019 to reach a high of $0.21 per token. The report also states that they believe that XLM price will reach $0.41 by December 31, 2019, a total increase of 260% overall.
The panel is made up of 6 professionals from the industry — however, they all did not agree with each another in their estimates. Instead, the survey simply averages the predictions from the 6 professionals to create a rather skewed medium.
Ben Ritchie, COO of Digital Capital Management, expressed high hopes for the cryptocurrency industry in 2019.
He stated that he’s looking for 2 important things in 2019. One is the decoupling of cryptocurrencies from Bitcoin as the majority are still tied to the price of Bitcoin and therefore exhibit similar movements in price action. The second thing he is looking for is to see if BTC would rise if the S&P 500 began to fall further lower.
Speaking about Stellar, Ritchie said that the cryptocurrency had gained a large amount of respect in 2018 as it continues to build a public blockchain that solves problems. For reference, he believed that Stellar would reach $0.14 by February 2019 and $0.35 by the end of the year.
Another one of the panelists, Joseph Raczynski of Joetechnologist.com, agreed with Ritchie’s sentiment. He stated that Stellar is in growth mode as it works on a scalable blockchain. He also said that “this could be the year” for Stellar. He predicts that Stellar would reach $0.13 by February 2019 and $0.30 by the end of the year.
However, not all the panelists were as optimistic as those previously mentioned.
Jimmy Song, Bitcoin maximalist, admitted that he has absolutely “no idea” about Stellar and is just “guessing.” He finished by stating it will “probably” go down. Song predicts Stellar would reach $0.01 by February 2019 and $0.01 by the year end. His prediction was counted in the skewed average.
Considering the large range of extreme opinions in the price predictions, the report cannot really be deemed an accurate or objective report . Regardless, some of the informed comments from the panelists do provide an indication of market sentiment and their bullish predictions can be a starting point to assess the progress and value of the Stellar project.
Let us continue to take a look at price action for XLM/USD over the short term and highlight any potential areas of support and resistance moving forward.
Stellar has seen a small price decline totaling -2.35% over the past 24 hours of trading. The cryptocurrency is now exchanging hands at a price of $0.1075 after suffering a price fall totaling -14% over the past 7 trading days. However, the market is still up by a total of 8.83% over the previous month.
Stellar is now ranked in 6th position as it currently holds a $2.03 billion market cap value, sitting $160 million behind EOS.
Looking at the 4-hour XLM/USD chart above, we can see that after XLM/USD had reached resistance at the short-term 1.618 Fibonacci Extension level (drawn in blue) priced at $0.1465 towards the end of December 2018, the market went on to decline slowly.
Price action managed to hold above the .618 Fibonacci Retracement level (drawn in green) priced at $0.1121 going into the first week of 2019. However, the market recently plummeted and penetrated below the support at $0.1121 to find further support below at the short-term .786 Fibonacci Retracement level (drawn in green) priced at $0.1036.
Price action has now been trapped in a short-term range between $0.1121 and $0.1036.
If the market falls below the lower boundary of the trading range at $0.1036, we can consider the market to be bearish. At this moment in time, the market is pretty much neutral as it trades within the established range.
If the sellers continue to drop price action below the support at the short-term .786 Fibonacci Retracement level and the bottom of the trading range, we can expect further support beneath to be located at the short-term downside 1.272 Fibonacci Extension level (drawn in red) priced at $0.10.
If the bearish pressure causes XLM/USD to break below the $0.10 handle, we can then expect further support at the short-term .886 Fibonacci Retracement level (drawn in green) priced at $0.0986. This is closely followed by more support at the downside 1.414 Fibonacci Extension level (drawn in red) priced at $0.0947.
The final level of support to highlight towards the downside is located at the previous long-term downside 1.618 FIbonacci Extension level (drawn in dark blue) priced at $0.09329.
If the bulls regroup and begin to push price action higher, they will meet resistance initially at the short-term .618 Fibonacci Retracement level (drawn in green) priced at $0.1121, the upper boundary of the trading range.
If they can cause XLM/USD to climb above the upper boundary, then we can expect further resistance at the short-term .5 and .382 Fibonacci Retracement levels (drawn in green), priced at $0.1180 and $0.1239 respectively.
If the buyers can then continue to break above the January 2019 price high at $0.1325, further resistance above can be expected at the bearish .236 Fibonacci Retracement level (drawn in orange) priced at $0.1398. This is closely followed by more resistance provided by the short-term 1.618 Fibonacci Extension level (drawn in blue) priced at $0.1465.
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