The rally in non-fungible tokens that began in August came to an end on September 7 when the tokens were sent down in a flash crash. Profit bookings and warnings that the preceding boom reflected retail investor frenzy spurred the sell-off across the crypto industry.
Following the drop, the bullish Theta fell to a one-month low of 5.75, down from a high of 9.81 the day before. Stellar Lumens, which had previously exhibited a lot of bullishness. It Dropped from the resistance level, at a high of 0.43, to a low of 0.27 on the same day.
Nonetheless, both crypto assets are showing signs of life, and investors may want to get in on the next positive trend.
Analysis of the Stellar Lumens Daily Chart
THETA/USD is attempting to bounce off of the 6.54 support region. Similarly, XLM/USD is attempting to break through the 0.333 support level. It’s worth noting that both levels have historically supported prices, ushering in a bullish trend.
Furthermore, on both crypto coins, it is observed that a bullish pin bar has fully formed, which might potentially support prices.
The current formation of bullish pin bars at the support is an attempt by THETA/USD and XLM/USD to go higher, according to the THETA/USD and XLM/USD Trade Analysis. Prices are already being pushed higher by the bullish pin bars that developed on September 8.
THETA/USD was up 6.80 percent at the time of writing, while XLM/USD was up 5.35 percent in the last 24 hours. Despite the single-day meltdown on September 7, the rise supports the notion that investors are still camping out on altcoins.
THETA/USD and XLM/USD are expected to maintain their gains in the coming days, based on technical indicators.
THETA/USD Targets – Look for buy opportunities between 7.5 and 7.9, and possibly slightly below the recent high of 9.7. All of these zones have previously served as a minor resistance level and are crucial take-profit levels for THETA/USD.
Targets for the XLM/USD pair are 0.35 and 0.38, with 0.43 as a possibility. The levels are minor resistance regions, similar to THETA/USD, implying that some price hesitancy may emerge.
THETA/USD and XLM/USD have already begun to rebound from the recent cryptocurrency drop. The appearance of bullish pin bars on these crypto currencies confirms a probable buy move.
In Conclusion
Retail investor hysteria caused the concerns of the recent increase in altcoins. The continuous growth of non-fungible tokens (NFT) supported the prices and decentralized financing (DeFi). For more information on the path of crypto tokens, keep an eye on significant market developments.
Technical indications indicate a bullish perspective for Theta and Stellar Lumens, but it is still necessary to take profits at critical levels in order to manage risks responsibly.
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