Stellar (XLM), which has been experiencing a spectacular turnaround since the downturn in markets, is now up by over 50%. Following the release of the CPI data and the associated fears about an interest rate rise, there was a selloff.
As of the writing of this article, the Donchian channel shows that XLM’s average price is $0.1076. The Awesome Indicator gives out strong bullish signals after a drop.
It could be a sign of a rebound. This could signal a rebound in the XLM market after the September 13 disaster. Prices have risen above $0.1004 support, which sustained the decline from August 14 through September 6.
At the hour 4 hours, the coin shows an uptrend. However, the larger picture shows that this upturn could be fleeting.
Stellar Rally gives confidence to investors
The XLM token closely tracks Bitcoin’s price movements because the whole cryptocurrency market is modeled after it. The downward pressure of the triangle indicates that the coin’s motion is heading in a downward direction.
Fibonacci’s retracement tool was used to determine the support and resistance price levels. Bulls seek to exploit two support levels at $0.1023 & $0.1058.
These two factors have bolstered traders’ and investors’ optimism, which has contributed to the price increase.
Resistance level is $0.1153. This resistance can be overcome by price momentum and the price could climb to $0.1234. Investors and traders can take this as a strong buy signal.
Bullishness is also indicated by the indicator of momentum. Moving averages currently send buy signals in addition to buying signals. To see the market rebound, bulls need to have continued momentum to overcome the resistance levels of $0.1194 or $0.1234.
Looming Interest Rate Hike To Determine XLM Price
This can pose a problem even for larger cryptocurrency markets. As previously indicated, XLM and other cryptocurrencies on the market share a strong correlation with Bitcoin which, in contrast, tracks the S&P 500 Index.
In light of this, XLM’s mini-rally could be imperiled if larger financial markets continue to fear an impending interest rate hike. The XLM currency is currently struggling to exceed the barrier of $0.1153.
From the 10th until the 13th of September, the coin has already tested the specified resistance level. At the time this article was written, the coin is close to $0.1153.
A long candle on the charts could indicate that another attempt is being made to exit a trading range. The $0.1023 support level should be maintained. This will prevent a further fall. It could also cause an even bigger sell-off.
Source: TradingView.com| Source: TradingView.com Image featured from Zipmex. Chart by TradingView.com The analysis is a personal opinion of the author and should not be considered investment advice.