The U.S. Federal Reserve (Fed) is poised to raise the interest rates borrowing cost by 75 basis points (0.75%) on Wednesday. With a conscious effort to suck liquidity from the markets to tear down inflation. At the same time, the crypto traders are split on how bitcoin (BTC) would react to the rate hike. Until then, the top 5 trending coins and the related price action have been detailed below.
The largest cryptocurrency by market cap, Bitcoin is presently changing hands at $21,400 at the press time.
The price action is indicative of working its way up along an increasing red trendline and observing which BTCUSDT pair might test the psychological level of $20,000.
Moreover, the Bitcoin chart can be seen to have bottomed out around the $17,600 level. Since 18th June, Bitcoin price action has been making higher highs and lower highs on the daily timeframe.
At the current price action, Ether is caving under $1,500. Since yesterday’s trading session, the crypto has gained roughly 11% after taking support at $1,346.
This gain in bear markets is majorly a bullish derivative of the upcoming Ethereum merge in the second week of August.
After the ZK Rollup testnet launch announcement on 20th July, Matic has seen a significant gain in the last week.
Not only that, Polygon made it to Disney’s accelerator program. This event occurred in the second week of July, resulting in an overall gain of 31% by the end of the week.
Matic is currently changing hands at $0.80. While in the last daily trading session, it took support at $0.72 and bounced back by 12% since then.
Furthermore, a good support level to eye for MATIC is $0.78 for the continuation of the ascension.
Therefore a bullish momentum shall be seen after the breakout over $1.
Pancake Swap (CAKE/USDT)
CAKE has been down by approximately 92% since June 2021 highs. It is currently trading at $3.33, while its all-time high is printed at $44.
The crypto has taken support at $2.5 on June 18th to march its ascension towards a significant resistance level of $3.860.
Similar to Ether, Cake is also running by an increasing trend line. This might provide insights on future price action to support the trendline at $2.92 in case the price falls.
Amidst the ongoing crypto bearish sentiment, Solan has reached a new number of 1875 active validators on its proof-of-stake network.
This means that Solana now has the most active validators among all proof-of-stake blockchains besides Ethereum, which has 8,417 nodes and 409k validators.
While a pressing concern about the geo-concentration of Solana validators in the US and Germany, the risk of its blockchain’s health is reliant on those countries’ rules and regimes.
Speaking about price action, Sol took support in yesterday’s trading day at $35 (or the grey ascending trendline).
Furthermore, as the prices continue to rise, $45 can be categorized as the nearest resistance level to breach.