Cardano Price Declines After Fed Chair’s Speech
Cardano investors reacted to Fed Chair Jerome Powell’s speech as the currency showed a 7.10% decrease on Friday. Despite positive US economic indicators, the crypto market failed to stand up to Powell. The crypto market might undergo worse as almost every cryptocurrency has struggled significantly. Fxempire reports that ADA traded at $0.432 at Friday’s end, following a 1.53% increase on the day before. It broke through the First Major Resistance Level (R1) at $0.4733 to reach $0.482; a price reversal followed the morning hike, and the graphs fell. Later that day, ADA had a run against the Second Major Resistance Level (R2) at $0.4817; it fell through the day’s all Major Support Levels towards the end. Powell’s speech countered the Vasil hard fork that has been offering support to the ADA.
The speech had adverse consequences
Powell’s speech nullified the US economic indicators and Vasil hard fork’s statistics. The callous nature of the address strongly influenced investors’ minds. Powell shed light on the high worldwide inflation and the Fed’s measures to curb it in the future. Fxempire reports that Powell also emphasized the labor market conditions and dismissed speculations of a policy reversal. The reports suggested positive signs for Cardano before the speech; PoolTool showed an upgrade of 68% of the Cardano SPO nodes to v1.35.3, an increase from 62% and 53% on Friday and Thursday, respectively.
Cardano technical indicators
Cardano was trading at $0.435 at the time of the report, a 0.69% increase from the previous day’s figure. ADA initially fell to $0.427 before rising to $0.435; the currency needs to move through the $0.447 pivot to test the First Major Resistance Level (R1) at $0.467 and Friday’s $0.482. A continued price hike might support a run at the Second Major Resistance Level (R2) at $0.5027. If ADA fails to move through the pivot, it will result in another price decline.