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Breaking News: Major Win For Memecoins: SEC Affirms They Typically Do Not Qualify As Securities

Cardano Moves In The Red With The Market, Can The Price Of ADA Stay Above $0.46?

Reynaldo Marquez
Reynaldo Marquez
2 years ago
2 mins read
Cardano

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Cardano trends to the downside with the crypto market recording small profits on lower timeframes. The cryptocurrency continues to move in tandem with Bitcoin and Ethereum and seems poised for some volatility over today’s trading session.

Related Reading | Dogecoin Seen Doubling In Price, Despite Shedding 10% In Last 7 Days

At the time of writing, Cardano (ADA) trades at $0.46 with a 2% profit in the past 24 hours and a 9% loss over the past week. ADA’s price has given out almost of the gains it recorded during the crypto market relief and stands as the worst performing asset in the crypto top 10 by market cap.

Cardano ADA ADAUSDT 1
ADA’s price with minor profit on low timeframes. Source: ADAUSDT Tradingview

Only Solana (SOL) records the worst performance with an 18% loss over the same period. Cardano is negatively reacting to the uncertainty across the crypto market increased by today’s U.S. Federal Reserve (Fed) Federal Open Committee (FOMC) meeting.

During this event, the financial institution is set to announce its interest rate hike. The market expects a 75 basis points (bps) increase.

If there are no surprises, the crypto market could see a potential rally into previous levels with a spike in volatility.

Cardano And Crypto Market See Spike In Short Positions

As mentioned, the uncertainty around the crypto market could translate into the volatile price action, with no clear direction for the short term.

A pseudonym trader said the following on the effect of the FOMC meeting in the sector:

Leading into the FOMC, there is a huge increase of Open Interest (total dollar amount of open positions in the futures markt). This comes together with negative funding rates, which means traders are shorting (…).

The increase in short positions is attributed to speculators betting on a negative reaction to the FOMC. In that sense, the pseudonym trader bets on no clear direction after this event.

However, as NewsBTC reported earlier, trading desk QCP Capital has recorded a relief rally over the past month each time there is an FOMC event. This time should be no different with a decline in inflation expectations and a slowdown in economic growth metrics.

In short timeframes, retail investors are buying into ADA’s current price action. As seen below, these investors have been buying ADA since May at an increasing rate.

Related Reading | Ripple (XRP) Is Up 190% From Cycle Low, But Will It Ever Reach $3?

The market tends to move in the opposite direction than retail investors, but this time macro-economic conditions might be stronger and exercise a bigger influence on the price of Cardano.

Cardano ADA ADAUSDT MI 1
Retail investors (yellow on the chart) buying into ADA’s price. Source: Material Indicators
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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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