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Stellar (XLM) has seen a stunning turnaround after the recent market downturn. However, following the announcement of the CPI report and corresponding fears of higher interest rates, a sell-off ensued.

The Donchian Channel reports that the average price of XLM is $0.1076 at the time of writing. After a decline, the Awesome Indicator also emits very strong bullish signs.

This could signal a rebound. The XLM market showed a dramatic recovery from the September 13 disaster, with prices rallying above the $0.1004 support line that supported the August 14-September 6 decline.

After 4 hours, the coin is in an uptrend. However, looking at the bigger picture, we see that the recovery may be short-lived.

Stellar Rally gives confidence to investors

The XLM token follows Bitcoin price movements closely as the entire cryptocurrency market is modeled after it. The downward pressure of the triangle indicates that the movement of the coin is heading downwards.

Support and resistance price levels were calculated using the Fibonacci retracement tool. The bulls are trying to take advantage of two supports located at $0.1023 and $0.1058.

These two factors boosted the optimism of traders and investors, which contributed to the rise in prices.

The $0.1153 range represents the resistance level. If the price momentum overcomes this resistance, the price might reach the $0.1234 region. This can be a strong buy signal for investors and traders.

The momentum indicator also shows an uptrend. In addition to buy signals, moving averages currently send buy signals. For the market to rebound, however, the bulls must have sustained momentum in order to break above the resistance levels of $0.1194 and $0.1234.

Looming Interest Rate Rise to Determine XLM Price

Even for the broader cryptocurrency market, this can be a difficult problem. As stated earlier, XLM and other cryptocurrencies in the market share a strong correlation with Bitcoin which, on the other hand, follows the S&P 500 index.

In light of this, XLM’s mini-rally could be in jeopardy if major financial markets continue to fear an impending interest rate hike. XLM price is already struggling to break above the $0.1153 barrier level.

From September 10 to 13, the coin has already tested the specified resistance level. The coin is trading near the resistance level of $0.1153 at the time of writing.

The presence of long candles on the charts may signal another attempt to break out of a trading range. If the price goes down again, it should not break above the $0.1023 support level as it may trigger a bigger sell-off.

XLM total market cap at $2.8 billion on the daily chart | Source:

Featured image from Zipmex, Chart:

(The analysis represents the author's personal views and should not be construed as investment advice).

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