Home Market News 7 Cryptocurrencies Face Turmoil Amidst Federal Reserve’s Inflation Battle

7 Cryptocurrencies Face Turmoil Amidst Federal Reserve’s Inflation Battle

7 Cryptocurrencies Face Turmoil Amidst Federal Reserve’s Inflation Battle

Amidst fervent enthusiasm from mainstream investors, the cryptocurrency sphere is a playground of speculation. Yet, crucial to note is the influence of the Federal Reserve and its monetary decisions on the bedrock of blockchain assets.

Cryptocurrencies witnessed a downturn pre the release of the Consumer Price Index (CPI) report, a pivotal metric the Fed scrutinizes for interest rate determinations. The anticipated headline inflation of 3.1% was exceeded marginally with a print of 3.2% as per Yahoo Finance.

Inevitably, with increasing shelter costs, digital assets took a hit, as reducing the benchmark interest rate swiftly became less imperative for the Federal Reserve.

While cryptos are attempting a resurgence, prudent investors ought to exercise caution amidst this uncertain climate.

Cryptocurrency Giant Bitcoin (BTC-USD)

Up trend Technical graph of Bitcoin (BTC-USD) in futuristic concept, BITI ETF is a Bitcoin short fund for investors betting against Bitcoin.

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The foremost blockchain asset, Bitcoin (BTC-USD), has recently demonstrated remarkable resilience and volatility, hovering around $73,000 and encountering tentative support near $71,000. Interpretations under technical analysis point to an ascending triple top breakout pattern, suggesting robust bullish momentum propelling Bitcoin to key levels.

However, waning trading volume might signify an impending downturn. It’s akin to a weary boxer in the final rounds – exerting effort but lacking precision and impact in their punches. Hence, vigilance in monitoring this space is paramount.

Ethereum’s Ascendance (ETH-USD)

Etereum coin is in pocket. Ethereum is a decentralized, open-source blockchain with smart contract functionality. ETH crypto

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Ethereum (ETH-USD), the perennial second in market capitalization, displayed a modest 1% uptick early Tuesday, precariously holding the $4,000 level with a 9% weekly surge, slightly outpacing Bitcoin’s gains.

Analysts observe an ascending triple top pattern on Ethereum’s charts, suggesting accelerating demand surpassing supply. However, caution is warranted as buying volume has dwindled during the climb, signifying potential volatility in the near future. Traders anticipate a move past the $4,100 resistance for bullish confirmation or a correction to around $3,920.

Tether’s Stability (USDT-USD)

Image of four tehter coins

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Tether (USDT-USD), the stalwart stablecoin, upholds the peg amidst cryptocurrency upheavals, offering a semblance of stability amidst the whirlwind of digital assets.

Exploring Recent Cryptocurrency Performances

The Ebb and Flow of Cryptocurrency in Recent Times

As fervor for cryptocurrencies continues to surge, one stablecoin stands out – Tether, tethered to sanity amidst the unpredictable waves of the market. Tether offers a bridge between the traditional financial realm and the digitized world of cryptocurrencies. In times of opportunity, Tether holders have the upper hand, reacting swiftly compared to fiat currency holders converting to digital assets.

Tether and Market Sentiment

Beyond its practical utility, Tether reflects broader market sentiments. Last week, Tether often traded above the dollar, showcasing the feverish interest in digital assets. While momentarily dipping below parity, this movement signifies a potential course correction in the market.

Solana’s Stellar Rise

Despite not clinching the top spot, Solana shines as a star performer among cryptocurrencies. With a 1.5% uptick in the past day and almost 13% increase over the week, Solana exhibits promising momentum. A breakout pattern on SOL’s P&F chart hints at continued growth, although subdued volumes suggest potential consolidation ahead.

Rippling Effect of XRP

XRP, in the limelight lately, basks in the crypto fervor. Gaining 12% in a day and almost 12% over the week, XRP challenges its technical thresholds. Recent surges beyond moving averages and robust volumes indicate a possible climb to 75 cents, with further targets at 88 cents and potentially 93 cents.

Cardano’s Quirks in the Market

Cardano, a venerable altcoin, has struggled to keep pace this week. Despite marginal gains and losses in the past 24 hours, ADA has managed a modest 2% increase over the week. Showcasing a more subdued performance compared to its counterparts, ADA reflects a recalibration after a robust period from late February to early March.

Exploring the Cryptocurrency Market Trends

Exploring the Cryptocurrency Market Trends

Cardano (ADA-USD)

The world of cryptocurrency is an ever-turning rollercoaster of price fluctuations and investor sentiment. At the center of this whirlwind stands Cardano (ADA-USD), a digital asset that has recently captured the attention of traders and analysts.

Examining the charts, observers suggest that Cardano may be in the midst of forming a bullish flag, a pattern that often presages a significant upward movement. However, caution is warranted as the volume trends have shown a decline in recent sessions, a familiar occurrence in the crypto realm that could indicate a potential downside risk.

Delving into Barchart’s insights, we find key support levels residing around the 71 to 72 cents range. Optimistic traders are setting their sights on the 80 cents mark, with a long-term vision that extends to breaching the 89 cents milestone. The future of Cardano hangs in the balance, intertwined with the ebbs and flows of the broader crypto market.

Avalanche (AVAX-USD)

Amidst the cacophony of digital currencies, Avalanche (AVAX-USD) has emerged as a standout performer in the world of altcoins. With an impressive surge of approximately 18% in the past 24 hours and a staggering 36% return over the last week, Avalanche has captured the attention and wallets of investors worldwide.

The recent trading session painted a mixed picture as Monday showcased a robust “candlestick” pattern, only to be followed by choppy waters early on Tuesday. The tumultuous price action was no doubt influenced by global crypto enthusiasts monitoring the U.S. inflation report closely.

A shining beacon in Avalanche’s trajectory is the double top breakout pattern identified on the P&F chart, signaling a potential imbalance between supply and demand that could fuel a sustained rally. As investors scour Barchart’s cheat sheet for guidance, the focus now shifts to maintaining support at $46.34, with eyes set on breaching the $60 barrier after conquering resistance levels between $50 and $54.50.

On the date of publication, Josh Enomoto held a LONG position in BTC, ETH, USDT, and XRP. The opinions expressed in this article are solely those of the writer, adhering to the InvestorPlace.com Publishing Guidelines.

A veteran of the business world, Josh Enomoto’s expertise spans various industries, from electronics to investment markets. With a knack for insightful analysis and market foresight, he continues to be a beacon in the financial landscape. Follow his thoughts on Twitter at @EnomotoMedia.