Cardano is trending to the negative with the cryptocurrency market making small profit on shorter time frames. The cryptocurrency continues to move in tandem with Bitcoin and Ethereum and seems poised for some volatility over today’s trading session.
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Cardano, (ADA), is trading at $0.46. There has been a 2% gain in the past 24hrs and a 9% decrease over the 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.
With an 18% drop in performance over the same period, Solana is the only one to suffer. 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.
This event will see the announcement of the interest rate rise by the financial institution. According to the market, there will be a 75-basis points (bps), increase.
There are not many surprises in the market for crypto, but it could experience a rally to previous levels and a surge of volatility.
Cardano and Crypto Market see Spike in Short Positions
The uncertainty surrounding the cryptocurrency market can lead to volatile price movements, without any clear direction in the near term.
A pseudonym trader saidThe following is a summary of the impact of the FOMC meeting on this sector
In the FOMC there has been a large increase in open interest (total dollar amount for futures markets) leading up to the FOMC. This comes together with negative funding rates, which means traders are shorting (…).
This is because speculators are betting against a FOMC negative reaction. The pseudonym trader is betting on a negative reaction to the FOMC.
NewsBTC earlier reported that QCP Capital, a trading desk, has seen a relief rally in the last month every time an FOMC meeting was held. The FOMC event this month should not be any different, with an expected decline in inflation and slower economic growth.
In short timeframes, retail investors are buying into ADA’s current price action. These investors are increasing their ADA purchases since May as can be seen in the following graphic.
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Although the market is more inclined to go in the opposite direction of retail investors, macroeconomic conditions could be stronger than this and have a greater impact on Cardano’s price.