Altcoins
Cardano Price is in Consolidation Mode as Investors Digest Latest CPI Data
Cardano price has been trading sideways for the past few days as investors focus on the US key inflation data. During this period, the altcoin has been trading below the important bullish support at $0.300. At the time of writing, ADA was trading slightly lower at $0.2886. Its total market cap has crashed by nearly 2% over the last day, with the total volume of the ADA token traded, dropping by 6%.
Inflation Outlook
Cardano price has been in consolidation mode for the past few days as investors digest the latest US CPI data and Wall Street earnings. Even so, the digital asset has gained 1.69% in the past week and is up by 5.10% in the month to date. The ADA price is also up by 17.45% in the year to date but has remained 30.78% lower in the past year.
The global cryptocurrency market has also been on hold for the past few days against the backdrop of concerns about macroeconomic headwinds. The global crypto market cap has slipped over the past 24 hours to $1.19 trillion, while the total crypto market volume increased by 19.43% over the same period. The Crypto Greed and Fear Index has remained at a neutral level of 58 since the start of the week, hinting at the lack of confidence by investors.
Inflation dropped to its lowest annual rate in more than two years in June on the back of a decline in costs. The Consumer Price Index (CPI) measures the average change over time in the prices of a market basket of consumer goods and services. Data by the US Bureau of Labor Statistics shows that the key inflation data rose by 3% in June, compared to a year ago, its lowest level since March 2021. On a monthly basis, the headline CPI increased by 0.2% against market expectations for a 0.3% rise.
While the latest inflation data could give the Federal Reserve some breathing room, inflation remains above the Fed’s 2% annual target. Policymakers expect the inflation rate to continue falling over time in the wake of a cooldown in costs. Even so, traders are still pricing in a strong possibility that the central bank will hike its interest rates by a quarter basis point later this month before pausing.
Cardano Price Analysis
The daily chart shows that the Cardano price has been range bound for the past few days, trading between the tight range of $0.2770 and $0.300. The asset remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages.
Therefore, the Cardano price is likely to continue moving sideways as its struggles to find direction. A break above the major support level of $0.3050 at the 50-day EMA might push the price higher to the next resistance level of $0.3290. However, a move below the support level at $0.2785 will invalidate this view.
ADA Price Chart
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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