XLM could follow this path over the next two days if bears seize control
Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.
It will be secure to name 20 September a particularly risky day. The Federal Open Market Committee (FOMC) battled towards inflation by elevating rates of interest since March, and this pattern was prone to proceed.
Traders already anticipated a 75 bps hike, and a hike larger than that could possibly be the set off for an actual sell-off. This issues to Bitcoin [BTC] as a result of BTC adopted the S&P 500 in current months, and the altcoin market tends to comply with BTC sentiment. On the short-term worth charts, Stellar Lumens [XLM] confirmed bearish intent.
XLM- 1-Hour Chart
Supply: XLM/USDT on TradingView
On the next timeframe, the four-hour chart, the market construction of XLM was bullish. This indicated that on decrease timeframes reminiscent of one-hour, a dealer might be bullishly biased. A bullish order block was seen at $0.115, marked by the higher cyan field.
Sadly for consumers, the worth crashed proper by this order block and will retest it as resistance within the coming hours of buying and selling. This could arrange the stage for one more transfer downward for XLM.
One other bullish order block was noticed at $0.11. This space was additionally proper at a key assist stage from July and August. Subsequently, it may be anticipated to behave as assist as soon as extra, however a session shut beneath it will probably presage one other leg downward for XLM.
Rationale
Supply: XLM/USDT on TradingView
The momentum indicators additionally confirmed short-term promoting stress. The Relative Energy Index (RSI) slipped beneath impartial 50 and flipped the bias to bearish. The Superior Oscillator (AO) was on the verge of falling beneath the zero line as effectively.
The On-Stability Quantity (OBV) clung to a assist stage that had been a resistance zone just some days in the past. If the OBV fell beneath this stage, it might level towards vendor dominance. One other transfer downward on the worth charts might be anticipated.
Conclusion
It could possibly be that the market has already priced in a 75 bps hike announcement on the federal funds price. As such, there’s the chance that the crypto markets have already seen a promoting wave in anticipation as BTC dropped to $18.8k.
Stellar Lumens must get well again above the $0.115 mark and reclaim assist. Else, the sellers might shortly achieve momentum and drive a transfer as far south as $0.105.
