Sure enough, this one took me by surprise, as well as it took you.
Why is Stellar, a relatively undertraded and undervalued coin suddenly pumping like crazy?
Well, I've done my research, and I have answers for you. Let's get started!
Remember to claim your free BTC here!
The answers lie behind the charts for this one, however, I'm sure most of is weren't even watching this coin, so we probably haven't seen the chart. So here it is.
As I said before, the answers to my question lie behind the chart. So let's go there before coming back to analyse the chart.
About 3 days ago, I got a message from my WhaleAlert.io premium subscription. It notified me that about 5 million US dollars worth of XLM had been transferred to Binance.
Of course I took no notice of it. Because it wasn't on my watchlist.
I got similar messages across various exchanges, but took no notice as usual.
Believe it or not, there are XLM whales, and these whales pump it from time to time.
I believe they decided to pump it early today.
But that can't be all the information, can it?
And the answer is no.
We need to dive deeper. And to do that, we must analyse the XLM/BTC pair.
That pair would affect the XLM/USD pair drastically because BTC has a higher market cap than XLM.
The XLM/BTC pair didn't pump before this one, but the volume on it increased about two fold. This means either of two things:
- The traders were expecting the boom, or
- The traders wanted to increase their BTC holdings before the halving.
I'm more inclined to go with option 2 here.
And that seems to be the case once we look at the chart.
The coin was trading its regular range before a stupidly large amount of volume poured in. However, it didn't pump immediately the volume entered. It started its upward move about 5 hours later.
So option 2 is a little more valid.
What's my stance on this one?
I'm currently looking for 5x shorts on the coin. I believe it has run out of steam(or would soon be out), because this coin hardly pumps.
Anyway, only time would tell.
Thanks for reading, and don't forget to claim your free Bitcoin here!