Stellar Lumens Price Prediction: A Drop Below 0.1 Looks Likely

Summary:

Stellar Lumens price predictions have turned bearish after the August CPI data gives credence to a big rate hike by the Fed.

The Stellar Lumens price predictions turned negative when the US consumer price index data showed that US inflation had started to tick upward once more after having cooled the month before. The data has suddenly reignited bets of a very aggressive rate hike by the Fed when it ends its meeting on 21 September 2022.

Crypto assets are risky assets and the rate hikes triggered the latest round of weakness, which is into its 4th month. These hikes strengthened the US Dollar and the Tether asset (USDT), the flagship USD-linked stablecoin. Tuesday’s 8.25% nosedive reflected the market sentiment, but if the analysis by Nomura is anything to go by, bearish Stellar Lumens price predictions may only be getting started.

Nomura Securities has declared that the Fed will have to respond to the latest CPI data with a 100 basis points rate hike. Nomura identifies “a series of upside inflation risks” as the triggers for this big move.

The firm also believes that following the 100 bps move, the Fed will also hike by 50 bps in the November and December meetings. Currently, the Fed Funds futures have a 28% price-in factor for a 100 bps, showing that the market still tilts overwhelmingly toward a 75 bps move.

Stellar Lumens Price Prediction

The rejection of the Wednesday candle at the 0.1039 resistance (17 July and 19 August lows) has given room for today’s downside continuation, which is expected to make contact with the pivot at 0.1001 (18 June and 6 September lows).

A breakdown of this price mark leads to a downtrend continuation, targeting the 17 November 2020 high at 0.0891. An extension of the downtrend touches home at 0.0737 (14 October 2020 low) before 0.0657 (15 June 2020 and 5 July 2020 lows) makes itself an additional target to the south.

This outlook is invalidated if the bulls protect the 0.1001 support. A trend reversal has to be triggered by a break of 0.1066 (18 July 2022 and 5 September 2022 lows). This clears the path toward 0.1131 (3 August and 11 September lows). A continued advance targets 0.1200 (1 August high and 17 August lows), leaving the 0.1302 (25 June and 14 August highs) as an additional target to the north. The 8 August high at 0.1392 also lies ahead.