It may be the Federal Reserve that has overshadowed some of the upward movement in crypto over the past few weeks. It is possible that the Fed will raise the benchmark interest rate at its next meeting. Crypto expert Josh Enomoto looks at 6 altcoin projects that have the potential to be affected in this process.
In the first place is the leading altcoin Ethereum (ETH)
Ethereum (ETH) has been all over the map lately. Fast forward to midnight, Ethereum has dropped close to 1% of its market cap in the last 24 hours. However, over the past seven days, ETH has gained almost 2%. On the technical chart, Ethereum takes stakeholders on a plain and simple journey. As with Bitcoin and other cryptos, ETH rose in mid-June, briefly reaching the 200 DMA. On June 21, the altcoin broke above the 50 DMA. Since then, it has been steadily attempting to rise above the $2,000 level, but is unable to hold on.
Fortunately, the 50 DMA (currently standing at around $1,854) acted as a strong support. This level needs to be maintained for Ethereum to make another short-term rally. Still, conservative investors may want to be wary of making aggressive moves as ETH is currently trading at low volume.
Leading stabelecoin Tether (USDT) is also on the list
Tether (USDT), still the number three blockchain asset by a comfortable margin, has a market cap of $83.8 billion at the time of this writing. By storing their wealth in Tethers (or similar cryptos), traders can instantly respond to emerging opportunities in the market. In contrast, those holding their wealth in dollars may have to go through the time-consuming fiat-to-crypto conversion process.
As this year’s regional banking crisis has shown, support for USDT comes from “paper” assets. And it’s possible for these entities to come under pressure in the real world. So it has the potential to impact cryptos in the decentralized ecosystem. It is necessary to be aware of this dilemma before investing real dollars in digital dollars.
The most popular altcoin project of recent days, Ripple (XRP)
This news got people talking excitedly about cryptos again. Last Thursday, the court ruled that Ripple Labs did not violate federal securities laws by selling XRP tokens on public exchanges. This naturally made XRP bullish. It was also a landmark legal victory for cryptos.
However, the court ruled that the company’s $728.9 million sale of XRP to hedge funds and other sophisticated buyers amounted to unregistered sales of securities. So, it was not a complete victory for Ripple. Still, the prevailing assessment was that XRP transactions represented “blind bid/ask transactions” among individual investors. In particular, Coinbase has stated that it wants to relist XRP. While cryptos are currently operating in a controversial area due to concerns about the Fed, XRP looks intriguing due to legal clarity. Definitely a name to watch closely.
Let’s not forget Ethereum rival altcoin Solana (SOL)
Among the top 10 cryptos, out of XRP, Solana (SOL) has seen the biggest gains over the past seven days, up 23%. Clearly, SOL represented one of the entities that could use the good news it received. Earlier this month, Solana struggled to break through the resistance imposed by the 200 DMA, which went above the 50 DMA. The bulls needed to make a strong statement and they did just that.
However, after breaking above $32 last Friday, SOL has lost value significantly. It is, however, in a much better position than last month when investors were justifiably worried that the altcoin could drop to multi-month lows. Instead, it’s possible for it to potentially form a higher base of support. If so, Solana offers an attractive profile for speculators. That doesn’t mean the road will be easy. Because it probably won’t. Ideally, the next target for the SOL is the $32 level, which represents strong horizontal support. However, there is a movement of about 20% from here. This, too, is likely to be challenging given the broader fundamental picture.
‘Ethereum killer’ Cardano (ADA)
As you follow on Kriptokoin.com, Cardano (ADA) has shown a promising glow this year after a terrible period in 2022 when the Fed aggressively implemented its hawkish monetary policy. However, like many other cryptocurrencies, ADA has been all over the map. ADA has dropped more than 3% in the last 24 hours. However, it has gained almost 7% of its market cap over the past week. Basically, ADA needs to stay above the 30 cents line, which is roughly where the 50 DMA sits. If it drops below this point, we’re back where we left off last week. Thus, the flat top of the wedge pattern exerts upward resistance.
Last ranked altcoin Dogecoin (DOGE)
While some label Dogecoin (DOGE) as silly fun, other people really embrace the DOGE ecosystem. Wherever you are on the spectrum, one thing is clear. And this Dogecoin deserves respect. The speculative coin currently has a market cap of $9.8 billion.
DOGE has lost 1% in the past 24 hours. However, it has gained slightly less than 7% of market capitalization in the last seven days. Looking forward, the altcoin needs to rise above the frustrating technical clouds. For example, the 7-cent Dogecoin is stuck between 200 DMA (7.7 cents) and 50 DMA (6.7 cents). Ideally, Dogecoin bulls should try to push the price towards 7.5 cents, where strong horizontal support is found. The next big target from here is 12 cents. That’s a bit of a challenge given that the Fed could easily ease speculative enthusiasm with higher interest rates. Still, it is encouraging that Dogecoin is slowly building up the momentum created by the Ripple announcement. Worth considering.
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