To us, the bid in alts is palpable. Believe it or not, alts may have become "low-risk" crypto plays. What do we mean by low risk? Well, earlier this month, we saw a report that stated the European Union was talking about banning crypto projects that deemed too "high risk." They were, of course, talking about Facebook's Libra.
So, if Facebook Libra remains the object of government FUD, then other alts may be viewed as less risky and have brighter prospects. One of those projects may be Stellar (XLM). Stellar looks like it can get to at least the 200-day moving average at .89. That level is also the location of a big horizontal resistance point.
Bottom Line: The bid in alts is not making crypto a casino again. Rather, it's making small coins look like investments once again. We can thank Facebook for drawing the ire of governments away from the rest of the crypto market.
So, if Facebook Libra remains the object of government FUD, then other alts may be viewed as less risky and have brighter prospects. One of those projects may be Stellar (XLM). Stellar looks like it can get to at least the 200-day moving average at .89. That level is also the location of a big horizontal resistance point.
Bottom Line: The bid in alts is not making crypto a casino again. Rather, it's making small coins look like investments once again. We can thank Facebook for drawing the ire of governments away from the rest of the crypto market.