Cardano Price Takes a Nosedive as Fed Remains Hawkish

Cardano price has been on a strong bear run for the past few weeks as concerns about the Fed’s hiked rates grow. The altcoin has crashed more than 4% in the last 24 hours and more than 78% since the start of the year. The coin’s total market capitalization has plunged by more than 8% over the day. The total volume of ADA traded in the last 24 hours has jumped 56.71%. Cardano is the 8th most valued digital asset in the world.

US Economic Outlook

The crypto market was in the red on Thursday, hours after the Federal Reserve released its minutes. According to Fed officials, with the soaring inflation, they expect the higher interest rates to remain until prices come down.

According to the minutes released, the Fed implemented its third consecutive 0.75 percentage point rise taking benchmark rates to a range of 3%-3.25%. Policymakers reiterated rate hikes are likely to continue and higher rates will prevail until the problem is showing signs of resolving.

Therefore, with the hiked interest rates and soaring inflation, the Cardano price will continue to struggle. ADA has been among the poor-performing cryptocurrencies in the past few days. Other poor-performing altcoins include XRP, BNB, Dogecoin, Solana, Polygon, and Shiba Inu, among others.

The US Bureau of Labor Statistics is in the limelight today ahead of US key inflation data. US stocks are mute ahead of the Consumer Price Index (CPI) data For September. Forecasts indicate that the yearly CPI will have a slight edge down to 8.1%. The monthly core CPI is also expected to drop by at least 0.1%.

Cardano Price Forecast

The 4-hour chart shows that the Cardano price has been struggling to find direction for the past few weeks. The altcoin is trading below the 25-day and 50-day moving averages. Its Relative Strength Index is way below the oversold region at 18.

Therefore, putting the hiked interest rates into consideration, the ADA price is likely to continue its bearish run for the next few weeks. If this happens, sellers will be eyeing the next key support at $0.3000. The stop-loss for this trade will be $0.4000.

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