New Delhi: Major crypto tokens declined on Tuesday amid risk-off sentiment in the market ahead of key global economic events.
This cautiousness comes as the US central bank eyes a half-point interest rate hike on Wednesday.
The global cryptocurrency market cap was trading marginally lower at $1.74 trillion, declining about a per cent in the last 24 hours. However, the total cryptocurrency trading volume dropped about 7 per cent to 85.25 billion.
Jennifer Lu, co-founder of Coinstore, said that most of the crypto assets traded lower with Bitcoin and Ether showing marginal fluctuations. Crypto markets witnessed a downward push over the weekend but many assets have covered their losses.
“Investors are looking at the FOMC meeting which is scheduled to be held on Wednesday; the results of the meeting around monetary policies from the U.S Federal Reserve will determine the trend in the traditional and crypto markets globally,” he added.
- Revisions to Crypto.com’s card and staking rewards sent CRO token prices tumbling as much as 11% as the community expressed dismay over the changes that go into effect after June 1.
- ApeCoin (APE) prices slid as much as 11% on Monday in an otherwise flat crypto market after a much-awaited non-fungible token (NFT) project was sold for APE over the weekend.
- Solana stakeholders rushed to right the network Saturday night after what one insider called an “insane amount of data” flooded the proof-of-stake chain, knocking validators out of consensus and grinding block production to a halt.
- Wikimedia, the non-profit foundation that runs Wikipedia, has decided to stop accepting cryptocurrency donations following a three-month debate in which the environmental impact of bitcoin (BTC) was a major discussion point.
Tech View by Giottus Crypto Exchange
Cardano (ADA) is a Layer 1 blockchain platform with smart contract capability, one that offers high scalability and transaction speeds. Often dubbed an ‘ETH killer’, it was launched in 2017 by an Ethereum co-founder – Charles Hoskinson – and is already one of the largest blockchains running on a Proof-of-Stake (PoS) consensus mechanism.
After underperforming the market for several months, ADA may finally be showing signs of a reversal. In fact, it had already reclaimed the .236 retracement support of its drop in early April before retracing owing to BTC’s bearish moves.
ADA, however, has held on to its last low, forming a double bottom that may send it across resistances with conviction and strength. If $0.93 is reclaimed, a short term target of $1.13 is therefore certainly on the cards, followed by $1.36 for those willing to wait.
A loss of the current level though will indicate bearishness that could even send ADA to $0.4. Bulls, therefore, will want to battle at the current level to prevent a breach. Fundamentally, ADA remains a compelling crypto asset, with one of the largest, most loyal communities, a respected team, and solid future potential.
- Support: $0.75, $0.7
- Resistance: $0.93, $1.13, $1.36
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)