Much in line with expectations, a high US inflation reading for June would push the Federal Reserve to get more aggressive in tightening monetary conditions to slow the consumer-price increases.
Crypto cart was trading mixed with Bitcoin, Ethereum, XRP, Solana and Polkadot rising up to a per cent, while stablecoins also logged marginal gains. Shiba Inu and Dogecoin were among the tokens in the red.
The global cryptocurrency market cap was trading higher at the $ 897.86 billion mark, rising more than 3 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed more 34 per cent to $ 74.83 billion.
Bitcoin prices dropped after the CPI data, said Charles Tan, CMO, Atato. “In an interesting but much-anticipated development, US inflation soared to 41-year high as suggested by the latest CPI day.”
For investors, it means that the Fed continues to take strict measures to control inflation which may result in another rate hike. The high-interest rate may discourage borrowing and sellers may continue to dominate the market, he added.
Celsius Network, the embattled crypto lender that is facing liquidity troubles, fully paid off its remaining debt to the decentralized finance (DeFi) lending protocol Compound, freeing up nearly $ 200 million of pledged collateral.
Ethereum scaling tool Polygon is continuing to scale its Web3 infrastructure via a new project with media conglomerate the Walt Disney Company.
An obscure crypto-market metric known as the “stETH discount” is suddenly sending a distress signal, possibly because of speculation that the troubled lender Celsius Network is preparing to dump some of its holdings in a bid to raise liquidity.
Michael Barr, a former Ripple adviser, is set to assume one of the most important US regulatory roles after winning Senate confirmation to be vice chairman for supervision at the Federal Reserve.
Tech View by Giottus Crypto Platform
Designed to facilitate smart contracts and the development of decentralized applications, Solana is a highly scalable layer-1 blockchain based on the dual consensus protocol of Proof-of-Stake and Proof-of-History. Solana’s native token SOL is one of the top 10 crypto assets by market capitalization.
Like the majority of crypto assets, Solana has suffered an 86% drop from its all-time high value amidst adverse market conditions. All through 2022, Solana has been charting a downward trend marked by lower highs and accompanied by some steep pullbacks.
However, Solana seems to be attempting a trend reversal. It has finally been able to flip its long-term trendline resistance forming since April into a support. It has since then managed to stay above the new trendline support and has been consolidating between a narrow band of $ 32- $ 42.
Though US inflation is at the highest in the last 41 years, SOL is yet to show any clear sign of an upward momentum with its RSI standing at 44 and is still below its 20-day SMA of $ 37. In order to restore market confidence and gather some upward momentum, SOL needs to attempt another breakout above the psychological resistance of $ 40. The next resistance will be the .618 Fib level at $ 46.5. In case SOL fails to remain above the crucial .236 fib support level, the previous support of $ 26 will come into play.
Resistances: $ 37, $ 40, $ 46.5
Supports: $ 33, $ 26
(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.)