Altcoins
Avalanche Price Loses Momentum Ahead of FOMC Decision
Avalanche price has pulled back in the past few days as investors wait for the upcoming Fed decision. AVAX has also declined as buyers who benefited during January’s comeback start harvesting profits. It was trading at $20, which was a few points below the year-to-date high of $21.84. The coin has jumped by about 90% from the lowest point in 2022.
AVAX had a great January
Avalanche is a leading alternative to Ethereum. Some of its important features are that it is highly interoperable, has faster speeds, and has extremely low transaction costs. Avalanche has been used to build some popular apps in the ecosystem are Wonderland, AAVE, Benqi, Trade Joe, and GMX.
Avalanche has had a strong performance in 2023 as the amount of inflows in the ecosystem has jumped sharply. For example, Wonderland has seen its TVL jump by 8.45% in the past 30 days. Similarly, AAVE, Benqi, Trader Joe, and GMX have seen their assets jump by over 20% in the same period.
At the same time, the amount of fees in the ecosystem has been in an upward trend. The supply side fees in January peaked at $42.5 on January 1. In all, the fees collected in the ecosystem were better than in the previous month. They have risen by over 80% in the past 30 days.
The next key catalyst for the AVAX price will be the upcoming Fed decision. As we saw in September, crypto and stock prices surged ahead of the Fed decision. They then plunged when the Fed decided to continue with its hawkish tone.
Economists expect that the Fed will continue hiking interest rates when it concludes its meeting on Wednesday. They believe that the bank will hike by 0.50% for the second straight month. It will also warn that it will continue hiking rates in the coming months.
AVAX price forecast
The 4H chart shows that the Avalanche price has been in a strong bullish trend in the past few days. It rose to a high of $21.82, the highest level in months. The coin has formed an ascending channel shown in green.
It has also jumped above the 25-day and 50-day moving averages. Now, it seems like the bearish momentum is fading. Therefore, there is a likelihood that the coin will continue falling as sellers target the ey support at $18.
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
Ethereum price staged a strong recovery over the weekend, wiping out its previous losses after jumping by more than 11%. ETH has moved past the crucial level of $1,500 and is currently trading at 1,588.98. The altcoin’s total market cap has jumped by more than 8% over the past 24 hours, while the total volume of the coin traded increased by nearly 37%.
Fundamentals
Ethereum price staged a strong comeback during the weekend, breaking its 5-day consecutive downtrend. Ethereum’s recovery is in line with the overall recovery in the crypto market. The global crypto market cap has jumped past the $1 trillion level and currently sits at $1.02 trillion. The total crypto market volume has increased by more than 31% over the last day.
Last week was a tough week for the crypto community. The Silvergate crisis, as well as fears about potential further interest rate hikes, had been weighing on the crypto market in the past week. Silvergate recently announced its plans to wind down its operations and liquidate its bank, staging the biggest hit on the crypto market after FTX’s collapse and Terra’s LUNA crash.
Notably, Fed chair Jerome Powell warned that the US central bank is likely to impose further interest rate hikes to higher levels than previously anticipated. The raising of interest rates over the past year has heavily weighed on risk assets such as cryptocurrencies and stocks.
Binance, the…
Cardano price has been under intense pressure for the past few days as Silvergate poses for a potential bankruptcy. ADA has slipped by more than 7% in the past week but remains 32% higher in the year to date. At the time of writing, ADA was 2.54% lower at $0.3221, while its total market cap inched nearly 1% lower. Cardano ranks as the 7th largest cryptocurrency by market cap after XRP and above Polygon.
Fundamental Analysis
Cardano price has recorded a sharp decline for the past few days as Silvergate’s crisis continues to weigh on cryptocurrencies. Silvergate Capital is a Californian bank that pioneered money transactions between cryptocurrencies and hard cash. The Silvergate crisis looks to be the next big failure after the collapse of FTX and Terra’s LUNA meltdown.
Data by Coinmarketcap show that the global crypto market cap has continued to move lower to $1.01 trillion, pointing to a bearish outlook in the crypto market. Bitcoin’s dominance has also inched lower as the digital asset remains at the $22,000 level.
Fears of higher interest rates by the US Federal Reserve have been gnawing at the markets, following Powell’s hawkish tone. Fed chair Jerome Powell announced on Tuesday that the Federal Reserve is prepared to return to bigger interest rate hikes in a bid to fight inflation.
The US central bank has been struggling to cool the economy despite a year-long campaign of…
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