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Cardano Price Sets Out for an 8% Slip Amid Silvergate’s Crisis and a Hawkish Fed

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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 monetary tightening. Even so, at his congressional appearance on Tuesday, Powell warned of his willingness to impose further interest rate hikes to combat persistent price rises. The Fed chair announced that the ultimate level of interest rates could go higher than previously anticipated on the back of strong economic data.

In reaction to Powell’s statement, the yield on the 10-year Treasury inched lower to 3.972%, while the 2-year Treasury yield rose to 5.045%, its highest level since 2007. The dollar scaled multi-month highs against other currencies on Wednesday, following Powell’s statement. The dollar index is hovering above the crucial level of $104.00 at $105.674, its highest level since early January.

Cardano Price Analysis

Cardano price has been hovering slightly above the crucial level of $0.300 for the past few days as markets digest Silvergate’s backing out. On the daily chart, the ADA price has formed a descending triangle (shown in yellow), which is a bearish indicator. The altcoin has fallen below the 25-day and 50-day moving averages, while its Relative Strength Index (RSI) slips to 33, slightly above the oversold region.

Therefore, it is likely that the Cardano price will continue falling in the short term, extending its bearish trajectory. If this happens, the next key support level to watch will be $0.300. However, a move past the major resistance level of $0.3540 will invalidate the bearish view.

ADA Price Chart

 

 

 

 

Altcoins

Solana Price: Technicals Point to a Sell

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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…

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Ethereum Price: ETH Jumped 10% Over the Weekend, What Next?

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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…

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AAVE Crypto Price Staggers Amid Mixed On-Chain Data

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AAVE price crawled back in the past few days even as the number of daily number of users dropped. The token was trading at $87.38, which was a few points above this week’s low of $83.44. It has jumped by about 70% from the lowest level in 2022.

AAVE mixed statistics

Aave is a leading non-custodial financial platform that makes it possible for people to deposit funds and earn interest. It exists across multiple chains like Ethereum, Avalanche, Polygon, Optimism, Arbitrum, Harmony, and Fantom. Its most active platform is about $6.1 billion. 

AAVE V2 has a total value locked (TVL) of over $6.2 billion while V3 has a TVL of over $997 million. V1 is much smaller with its TVL of more than $30.6 million. A quick look at on-chain data shows that the network is not doing extremely well. 

For example, the number of daily active users soared to more than 12 million in June 2021. The number of users has dropped to a low of 2.8k. At the same time, as shown below AAVE’s revenue has been in a downward trend. Its daily revenue peaked at $266k in October 2021 to the current $26.2k. 

AAVE revenue

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