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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.

Barring the dollar-pegged USD Coin, Terra and Avalanche, all other crypto tokens were trading lower. Shiba Inu tumbled about 3 per cent, followed by a two per cent fall in Solana and Bitcoin each.



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.

Expert
take

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.

Global updates

  • 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.

ADAET CONTRIBUTORS

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.

Key levels:

  • 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.)

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