Disclaimer: The findings of the following evaluation are the sole opinions of the author and shouldn’t be thought of funding recommendation.
It can be secure to name 20 September an especially 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.
Investors already anticipated a 75 bps hike, and a hike increased than that could 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 latest months, and the altcoin market tends to follow BTC sentiment. On the short-term worth charts, Stellar Lumens [XLM] confirmed bearish intent.
XLM- 1-Hour Chart
On a better timeframe, the four-hour chart, the market construction of XLM was bullish. This indicated that on decrease timeframes akin to one-hour, a dealer will be bullishly biased. A bullish order block was seen at $0.115, marked by the higher cyan field.
Unfortunately for patrons, the worth crashed proper via this order block and could retest it as resistance in the coming hours of buying and selling. This would arrange the stage for one more transfer downward for XLM.
Another bullish order block was noticed at $0.11. This space was additionally proper at a key assist degree from July and August. Therefore, it may be anticipated to behave as assist as soon as extra, however a session shut beneath it will possible presage one other leg downward for XLM.
The momentum indicators additionally confirmed short-term promoting stress. The Relative Strength Index (RSI) slipped beneath impartial 50 and flipped the bias to bearish. The Awesome Oscillator (AO) was on the verge of falling beneath the zero line as effectively.
The On-Balance Volume (OBV) clung to a assist degree that had been a resistance zone only a few days in the past. If the OBV fell beneath this degree, it could level towards vendor dominance. Another transfer downward on the worth charts will be anticipated.
It could be that the market has already priced in a 75 bps hike announcement on the federal funds price. As such, there’s the risk 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 could shortly achieve momentum and drive a transfer as far south as $0.105.