Bitcoin, Ethereum, and several other altcoins began to rally upwards before the FED rate hike, indicating that the broader crypto market is of the opinion that the 0.75% hike is a “priced in” event.
On September 21st, the FED hiked interest rates by a whole 75 basis points, severely weakening the standing of several altcoins in the process. As if that wasn’t enough, the FED chairperson, Jerome Powell also made projections of an additional 125 basis points public. FED rates according to Powell, will continue to increase until the US inflation rate hits a low of 2%.
If FED rates continue to increase like this, the total figure may move from the 3% it currently sits at, to about 4.4%. A scary figure, compared to the original projections of 3.8%, made in June.
The downside of this recent development is that high-risk assets like stocks and cryptocurrencies will begin to lose their appeal, delaying the start of a new market trend from this crypto winter the market is currently facing.
Below, you’ll find in-depth analyses of some of the top altcoins, and how they fared during the storm throughout this week.
1) Ripple Crypto Coin (XRP)
This week was a good one for ripple coin. Following speculation about the result of the lawsuit the SEC filed against Ripple Labs, the price of XRP has done extremely well over the last week. This is because the broader crypto community expects Ripple Labs to come out victorious against the SEC after the hearing sometime soon.
Ripple the $0.41 mark and even closed above it on Tuesday, but the bulls lost steam and the price subsequently fell to the 20-day exponential moving average around the $0.38 mark.
However, the price subsequently reversed, catapulting the price of XRP to a high of $0.5575. The price of XRP is currently experiencing a correction and may either continue upwards or fall and retest the $0.42 support.
2) Cardano Crypto Coin (ADA)
Cardano has been in a range for a while now. The bulls have been trying to push ADA above the $0.5 – $0.51 resistance throughout the week, and have been unable to do so because the bears keep selling on intraday levels.
If the price of ADA drops below where it currently is and slips below the $0.45 support, the ADA/USDT pair may drop to the next pivotal support around the $0.42 level.
3) Solana Crypto Coin (SOL)
Solana, just like most other altcoins in the market, was affected by the FED-rate hike. It bounced off the $30 support and soon began to trend upwards.
The bulls, however, could not push the price above the 20-day exponential moving average around the $33 mark, indicating that the bears were ready and waiting at the higher levels.
SOL soon experienced a correction and is currently hovering around $31.32 at the time of writing.
If the bulls manage to take over again, we may see another retest of the $33 zone, and a possible bullish breakout above this level.
Conversely, if the bears take over, we may see a retest of the $30 level or a possible breakdown of this same level.
4) Polkadot (DOT)
Polkadot has been in a range between the $10 and $6 levels for weeks now. Recently, however, the price has slipped right back down to the $6 level after the FED-rate hike.
So far, the price has bounced off this level. However, in the event of a retest, the bulls are expected to defend this level with vigor once again.
A break below this point could be catastrophic for the price of DOT. Such a price movement could send DOT straight down to the next major support around the $4 level.
5) Polygon (MATIC)
Polygon, like DOT, has been trading in a range for the past few weeks. This time, polygon is bounded by the $0.72 and the $1.05 lines.
On Monday however, the price of Polygon broke through this level, sinking to the $0.72 support and then breaking below after the FED rate hike to the $0.6914 level.
Polygon’s price bounced off this support, hit the $0.77 level, and currently appears to be trending back down.
If the price hits the $0.6914 level and bounces off again, we may see a subsequent leg up and a retest of the $0.77 support. If the bulls manage to show strength again and break through this level, we may see strong bullish momentum to the upside.
However, if the $0.6914 level fails to hold the next time prices test it, we may see an even bigger downside to the price of polygon.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)