The post Can Lower Interest Rates Spark a Rebound? appeared on BitcoinEthereumNews.com.

As the Federal Reserve hints at cutting interest rates again in 2026, global markets are recalibrating their expectations. Stocks and bonds are reacting first, but digital assets like Stellar ($XLM) could soon follow. Historically, rate cuts fuel risk-on sentiment — yet the crypto market’s response depends on liquidity, investor confidence, and real-world adoption. With XLM price trading near $0.20 and trapped in a prolonged downtrend, the question now is whether these macro shifts can ignite a sustainable rally or if the coin risks sliding deeper before recovery. Stellar Price Prediction: Rate Cuts May Not Be the Silver Bullet The Fed’s plan to gradually reduce rates might look bullish on paper, but its impact will likely be uneven. Credit card and savings rates respond quickly to monetary policy, while auto loans and long-term mortgages remain sticky due to inflation expectations. This uneven relief could limit the short-term liquidity boost that crypto investors are hoping for. If consumer spending and credit expansion stay muted, risk assets like XLM could continue facing headwinds. The key lies in how much confidence returns to retail markets. A dovish Fed typically signals weaker USD strength — a positive for crypto — but persistent inflation could cap gains. Stellar Price Prediction: XLM Price Struggles Below Resistance XLM/USD Daily Chart- TradingView Looking at the daily TradingView chart, Stellar price technical posture reflects a market still under pressure: The Stellar price sits around $0.202, below the 20-day SMA (0.217) and the upper Bollinger Band at $0.233, signaling persistent bearish momentum. The bands remain moderately wide, showing volatility without clear breakout direction. Since October, XLM price has been forming consistent lower highs and lower lows, indicating that buyers remain hesitant. The psychological support level of $0.20 has held so far, but any breakdown below it could open the path toward…

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Filed under: News - @ January 1, 2026 8:08 am