Although the price spikes following the Fed announcement cleared recent bearish drawdowns and provided support levels, uncertainty remains over the sustainability of the increases.
The prices of major cryptocurrencies, including Cardano (ADA) and Solana (SOL), have seen fluctuations around the latest Federal Reserve announcement on interest rates. On December 13th, 2023, the Fed decided to keep rates within a target range of 5.25–5.50%, leading to an initial boost in the price of Bitcoin (BTC) and some altcoins. Following the news, BTC spiked 2.2% to reach $43,400, reflecting an overall sense of relief in the crypto market.
The day prior to the Fed’s decision, Bitcoin’s price had declined despite optimism that the Fed would avoid more aggressive tightening. As the Fed maintains rates and indicates a cautious outlook for 2024, complex market dynamics, including risk trends, inflation expectations, and overall investor sentiment, seem likely to drive further volatility for major cryptocurrencies.
Cardano, Solana, and Avalanche Price Trajectory Following the Fed Interest Rate Announcement
ADA, AVAX, SOL, and the broader cryptocurrency market also followed a similar trend. While the news lends some support to their bullish spikes, it is not certain how they will thrive in the long term. Let’s go into more detail.
Cardano (ADA) hit a support level at $0.55 before spiking from $0.54 to $0.64 yesterday, an 18%+ gain. Although undergoing a minor correction, at the time of this writing, Cardano remains up over 13% over the last 24 hours. Trading volume has also exploded 96% higher to an impressive $2.07 billion, signaling surging interest in the cryptocurrency. Despite a small pullback, the upside momentum remains very strong.
Similarly, Solana (SOL) has seen bullish price action, rising from around $63.80 to $73.50, an impressive 15%+ spike within the span of 24 hours. Like Cardano, Solana maintains a 24-hour increase of over 12% currently. However, unlike Cardano, Solana’s trading volume has dipped 5% as bullish traders possibly take early profits. Still, Solana’s market capitalization has expanded by 12%, highlighting renewed market enthusiasm.
Avalanche’s (AVAX) price has traced a comparable bullish trajectory, spiking from around $34 to $39 after taking support for an impressive one-day gain exceeding 15%. Over the past 7 days alone, Avalanche has surged an astounding 47%. Matching the price rise, trading volume and market capitalization have increased by 20% and 9%, respectively, over the last 24 hours. Upside momentum remains very positive for Avalanche amid the broader cryptocurrency rally.
Will Bitcoin and Altcoins Prices Continue to Be Bullish?
Although the price spikes following the Fed announcement cleared recent bearish drawdowns and provided support levels, uncertainty remains over the sustainability of the increases. While Bitcoin has seen consistent gains lately amid spot ETF anticipation and its upcoming halving event, potentially driving further upside, other major cryptocurrencies have not followed the same trajectory. Their prices remain subject to various independent dynamics that will likely determine long-term trends. For instance, Cardano and Solana fundamentals around development activity and real-world usage have diverged. So despite the broad relief rally after the latest Fed decision, a general projection for altcoins remains mixed and complex.
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