Some analysts are looking at altcoins like Cardano (ADA) to provide clues, to further speculate on the cryptocurrency situation as the general market deflates.
This morning, Bitcoin is at a disappointing $29,400 or so, and ETH is around $1900.
Looking at ADA, we see that the coin is at lows not previously seen since January 2021.
“Cardano (ADA) price looks bullish as it does a U-turn on Monday following negative economic spikes from China getting crypto traders all worried,” writes Jet Encila at NewsBTC. “In addition, many major corporations are exiting Russia, including McDonald’s. All of these factors contribute to heightened risk sentiment making it entirely difficult for major cryptocurrencies to elevate in price than usual. This could also mean bad news for ADA; risking a 32% correction. The negative sentiment has been growing enormously which also signal a downward trend in the next quarters.”
Then there’s Ripple, which stood at its current price of about $0.40 in February of that year.
Notwithstanding Ripple’s presumed future victory over the SEC in its battle over the XRP token, many are looking for a greater bounce in cryptocurrency values across the board, as we claw out from the Federal Reserve’s unprecedented rate hike.
However, traders are also keeping an eye on Ripple v. SEC.
“Another week, another bark in the dogfight between Ripple and the SEC – and this time it’s getting down to the nitty-gritty,” writes a commenter on a trading thread where we can see the lower price action currently marking the tape.
Anyway, look for green shoots as the market adjusts to higher interest rates after a hike of 50 basis points by the Fed.
“Chicago Federal Reserve Bank President Charles Evans on Tuesday said he supports moving to a shallower rate-hike path by July or September to allow the Fed time to assess inflation and the job market as it pushes borrowing costs up to neutral, and likely beyond,” writes Dan Burns at Reuters.
What do you think that will look like, in crypto and in equities?