$0.2 proves to be strong resistance for Stellar. The strength of the US dollar is responsible for Stellar’s weakness.

$0.2 proves to be strong resistance for Stellar. USD strength is responsible for Stellar's weakness. Support in the triple bottom may not be reached if the market reaches it.

The US dollar rallied over the summer, putting pressure on stocks and fiat currencies. A higher dollar has put pressure on the cryptocurrency market as it puts downward pressure on crypto prices.

One example is Stellar (XLM/USD). The advance to $0.2 over the summer appears to be a reaction to the earlier triple bottom. However, there was an increase in the otherwise depressed trend.

Black market rallies are powerful and often lead traders to believe that a major change is in the cards. But frequently, they are nothing but sharp.

In other words, for Stellar to continue rallying above $0.2, the dollar must give up its summer gains.

Star Chart by TradingView

How can the dollar turn into a depression?

In different ways.

One is that bond yields will decrease, and bond prices will increase. The recent sell-off in the bond market has boosted demand for greenbacks.

Another is the consolidation or reversal of crude oil prices. Oil has rallied more than 38% over the summer, prompting lower equity prices, which has translated into a stronger dollar.

Finally, the Federal Reserve. While there are no rate cuts in the near future, the central bank's message is important.

So far, the federation prefers to be in the wait-and-see camp. Uncertainty is key, and balance sheets tend to shrink.

Returning to Stellar, failure to break above the $0.2 resistance could send the price to support in the triple bottom area. If this is the case, support cannot be maintained.