Stellar price has erased some of the week’s gains as the market reacts to the Fed interest rate decision. Recently, the correlation between cryptocurrencies and other risk assets has risen. In the past, digital currencies appeared to be an isolated class of assets that did not necessarily move in tandem with global policy.
As a reaction to the Fed’s hawkish stance that defined the interest rate decision released on Wednesday, risk assets like precious metals and equities erased some of the previous gains. Notably, cryptocurrencies are on a similar trajectory.
Bitcoin, the leading crypto by means of market capitalization, dropped from Wednesday’s high of $39,066.46 to a low of 3,5561.73. Polygon and Ethereum are some of the altcoins on a similar path.
XLM is hovering below 0.2000; a level that has been a crucial resistance zone for the altcoin for close to a week. It momentarily rose above this level on Wednesday before the Fed’s hawkish pivot triggered a decline. As at 08:21 a.m UTC, it was down by 1.65% at 0.1938.
As shown in a four-hour chart, Stellar price will likely remain under pressure in the coming sessions as it remains below the 25 and 50-day exponential moving averages. It is also below the long-term 200-day EMA.
At its current level, the 200-day EMA is the pivot for a trend reversal. For as long as bulls lack enough momentum to push the altcoin to this level, which is at 0.2474, the bears will remain in control.
In the immediate term, Stellar price will likely continue to find resistance along the 25-day EMA at 0.1979. Further rebounding may place the resistance level along the 50-day EMA at 0.2086.
On the lower side, a decline past the current support at 0.1872 will give the bears a chance to retest the week’s low of 0.1722.
This post was last modified on Jan 27, 2022, 09:18 GMT 09:18