HomeAnalysisBullish Reversal Pattern Emerges in Cardano as Federal Reserve Hints at Possible...

Bullish Reversal Pattern Emerges in Cardano as Federal Reserve Hints at Possible End to Tightening Cycle

Published on

Cardano forms a bullish reversal pattern

The Federal Reserve might signal the end of the tightening cycle

A move above $0.35 would trigger more strength

The week ahead is important for the US dollar as the Federal Reserve of the United States announces its interest rate decision on Wednesday. The market unanimously expects the Fed to hold the funds rate at the same level as six weeks ago, the second pause in the current tightening cycle.

However the focus will not be on the actual decision. Instead, it will be on what the Fed will signal that will come next.

More precisely, is the tightening cycle over? Can the Fed declare its fight against inflation over?

Sure enough, inflation has dropped from its highs. Also, it continues to drop.

If one can draw a parallel with Europe, then the Fed should prepare for inflation to drop even further. In Europe, the prices of goods and services have dropped drastically in October. Considering that the Fed and the ECB had similar tightening cycles, one may expect similar inflation trends.

A dovish Fed would spark US dollar weakness and some markets already sniffed it. The cryptocurrency market is one example, where Bitcoin rallied to $35k recently, triggering similar moves in other cryptocurrencies such as Cardano.

ADA/USD bounced from horizontal support – how much can it rally?

One of the cryptocurrencies that anticipates a dovish Fed is Cardano. ADA/USD has rallied from horizontal support and is trying to break dynamic resistance.

Cardano chart by TradingView

Cardano rallied with other cryptocurrencies at the start of the trading year but failed to hold onto its gains. However, it found strong support at $0.25, and then it bounced from the lows.

The market formed a bullish reversal pattern that might represent the end of the bearish market. A move above $0.35 should trigger more strength, while a drop below the 2023 lows would invalidate the bullish reversal pattern.

Share this articleCategories

Latest articles

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...

What is the difference between NVMe and M.2?

`` Over the last decade, solid-state drives (SSDs) have become the top choice for many...

More like this

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...
bitcoin
Bitcoin (BTC) $ 61,849.57 0.23%
ethereum
Ethereum (ETH) $ 3,409.56 0.36%
tether
Tether (USDT) $ 1.00 0.08%
bnb
BNB (BNB) $ 409.29 0.16%
solana
Solana (SOL) $ 127.62 1.87%
xrp
XRP (XRP) $ 0.619329 2.21%
staked-ether
Lido Staked Ether (STETH) $ 3,404.86 0.36%
usd-coin
USDC (USDC) $ 1.00 0.16%
cardano
Cardano (ADA) $ 0.729025 2.13%
dogecoin
Dogecoin (DOGE) $ 0.134148 7.46%