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Ethereum Price Bullish Momentum Fades: 8% Pullback Likely

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Cryptocurrency prices plunged on Monday as investors reflected on last week’s strong jobs numbers from the United States. Ethereum price pulled back to a low of $1,620, which was much lower than its last week’s high of $1,716. Similarly, Bitcoin plunged to $22,750 while other coins like Solana and Binance Coin also plunged. 

Strong NFP data

The main catalyst for the recent crypto performance was last week’s American non-farm payrolls (NFP) data. According to the Bureau of Labor Statistics, the American economy added over 500k jobs in January, the best month in over 5 months. These job additions helped drag the unemployment rate to 3.4%, the lowest level in over 50 years.

The strong NFP numbers came a day after the Federal Reserve delivered its first interest rate decision of the year. In it, the bank delivered a normal rate hike of 0.25%. Before that, the Fed increased interest rates by 0.50% in December followed by 0.75% in the previous four meetings. 

Therefore, the strong jobs numbers mean that the Fed will continue hiking interest rates in the coming months. With inflation rate still above the Fed’s target of 2.0%, there is a likelihood that the bank will hike by 0.25% in its March meeting. The terminal rate will be at 5.5%.

Historically, risk assets like cryptocurrencies tend to underperform in a period of hig interest rates. This also explains why American indices like the Dow Jones and the Nasdaq 100 index have all plunged after the recent jobs numbers.

Ethereum price prediction

Ethereum Price

Turning to the 4H chart, we see that the Ethereum price has formed what looks like a double-top pattern around the $1,700 level. This pattern is one of the most accurate bearish patterns in the industry. The 25-day and 50-day moving averages have also made a bearish crossover pattern. It is also clear that the coin has lost the bullish momentum that it had a few weeks ago. 

Therefore, the coin will likely have a bearish breakout as sellers target the key psychological level at $1,500. This price is about 8% below the current level. The stop-loss of this trade will be at $1,680.

Altcoins

Solana Price Outlook Amid Cautious Optimism

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Solana price has been struggling to break above the key resistance level of $21.10 over the past few days. Earlier in August, the digital asset encountered a strong rejection at the crucial resistance level of $25.45, curtailing gains above the fashionable level of $30. Even so, the smart contract token is among the best-performing cryptocurrencies so far this year, with a 102.61% jump in its year-to-date price. SOL’s total market cap has climbed by more than 5% over the last day to $8 billion, while the total volume of the asset traded over the same period increased by 40%.

Brighter Future Ahead?

Solana price faced significant challenges in 2022, including a 93% decline in its total market capitalization and a 96% drop in its total value locked (TVL). However, the SOL network has posted significant resilience in 2023, defying general market movements. Priority fees and network upgrades have contributed to a consistent 100% network uptime.

The Solana DeFi ecosystem has also shown significant recovery, with a 41% growth in the TVL. Its liquid staking derivatives have also played a role in the asset’s renaissance. The ecosystem has expanded into other sectors such as NFTs, gaming, and consumer-based applications, driven by technical advancements like state compression.

Notably, Solana recently admitted that the network has been facing difficulties in the decentralized finance (DeFi) sector. Even so, it believes that its new strategy will help it regain its foothold and…

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Cardano Price Needs to Clear Major Hurdle at $0.2785 for a Bullish Breakout

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Cardano price has been on a steep downward trajectory for the past few weeks on the back of a dull market and global macroeconomic concerns. The altcoin is down by nearly 6% in the month to date and more than 3% in the past week. Additionally, ADA price has shed more than 30% in the past six months, with its year-to-date price remaining in the red. Cardano’s total market cap has shrunk by more than 1% over the last day to $8.6 billion, while the total volume of the asset traded over the same period edged 13% lower.

Fundamentals

Cardano price has recorded significant losses in recent weeks in tandem with the global cryptocurrency market. Most of the digital assets have been treading waters over the past few weeks, with the premier cryptocurrency struggling to break above the crucial level of $27,000. The global crypto market cap has increased slightly over the past 24 hours, while the total crypto market volume decreased by 25%.

The Crypto Fear & Greed Index, which is a key measure of the emotions driving the cryptocurrency market, is a fear level of 39, slightly lower than the fear level of 42 recorded last week. A fear level usually indicates a decline in risk appetite by investors which might prompt traders to sell irrationally.

Investors have been assessing what could be ahead for the economy while weighing the outlook for interest rates after…

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Dogecoin Price: Eyes are on the Key Inflation Data

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Dogecoin price has posted significant losses over the past few weeks amid bearish crypto market sentiment. The digital asset has slumped by 18.65% in the month to date and more than 13% in the year to date. Additionally, Dogecoin has shed more than 5% in the past week in the wake of a dull market. The asset’s total market cap has declined over the last day to $8.59 billion, ranking DOGE 8th after Solana. The total volume of the digital currency traded over the same period has also decreased by more than 18%.

Economic Concerns

Dogecoin price has been in the red for the past few weeks against the backdrop of weak market sentiment, a decline in risk appetite, and macroeconomic concerns. The overall crypto market cap has also been on a downward trajectory, with the crypto market cap down to $1.03 trillion, its lowest level since June. The total crypto market volume has decreased by more than 18% over the last 24 hours.

Traders have been in jitters over the past few weeks in the wake of global economic uncertainty. Data released on Wednesday showed that the UK economy contracted by 0.5% in July, ahead of the 0.2% expected. The Bank of England (BoE) is expected to raise its interest rates by 0.25% to 5.5% in its meeting next week in a bid to curb the high inflation rates. Ahead of the BoE, the European Central…

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