One of the possible successors to Ethereum’s massive hash rate rallies, while the market is experiencing a long-awaited respite
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- Main reason behind recovery
- Raven and XRP are running for it
The cryptocurrency market ended the week on a positive note as the overall market capitalization of the industry once again surpassed $1 trillion, albeit falling below psychological limits earlier.
Main reason behind recovery
Over the past few weeks, we have seen how problematic the entire crypto market is due to the lack of flow. The bearish backdrop of the market, the lack of positive events in the space and the only growth factors on the market reflected in the Ethereum merge update are not enough to propel the price of digital assets not related to Ether.
But despite all the negativity, markets felt some relief after the Fed’s Powell speech, which reassured most market participants about the path regulators had taken to control high inflation and problems in the US economy.
Monetary policy prediction can sometimes be more important to the market than the macro-environment in which it exists. The ECB was also expected to increase the rate by 75 bps, which makes the event less stressful for the market, as it has been priced earlier.
Earlier, the cryptocurrency market saw one of the biggest spikes in open interest in trading history, indicating speculators are returning to the market and expect volatility to increase in the coming days or weeks. This comes as no surprise given the series of important market-related events that are set to take place next week.
CPI inflation data will be released on September 13, possibly in line with the strategy of financial regulators in the US to change or limit if needed. The FOMC meeting is expected on September 20, where the Fed will hike the key rate. Fortunately, the market has already raised rates by the end of the year, which is why the volatility spike shouldn’t be too great if the market goes according to plan.
The Ethereum merge will also take place around September 13th or 14th and should not shake the market in any way if there are no technical issues during the transition.
Raven and XRP are running for it
Along with the recovery of the crypto market, alternative cryptocurrencies are also showing a lot of strength by increasing their value by up to 20% over the past 24 hours. The biggest gainer in the market today was Ravencoin, which was considered one of the main candidates for the Ethereum to hashrate transition after the PoW shutdown.
XRP has also proved to be a good candidate for a reversal as the coin has gained over 10% of its value over the past three days, providing a huge return in the bullish price range that it will reach further. The next resistance level is reflected in the 200-day moving average.
For now, the cryptocurrency will need to gain a foothold and consolidate above the 50-day moving average unless the market faces a new wave of influx, which could be a successful Ethereum merger or an unexpectedly low inflation number. will be inspired by.