As the Federal Reserve approaches the end of its quantitative tightening cycle, cryptocurrency analysts are identifying potential opportunities in altcoins such as XRP, Chainlink, and Cardano, based on historical patterns and technical indicators.
Cryptocurrency Market Trends and Predictions
Crypto analyst Dan Gambardello has noted that the completion of quantitative tightening and a rise in the manufacturing purchasing managers’ index (PMI) above 50 can signal the start of bullish phases in cryptocurrencies. With the current quarterly cycle ending in a few days, Gambardello’s analysis suggests that similar market conditions last occurred in September 2019, when Bitcoin pair levels and risk score zones were consistent with current measurements, albeit at different price points.
According to market data, Chainlink is currently trading at levels comparable to September 2019, when the previous quantitative tightening cycle ended. The cryptocurrency’s on-chain risk score remains below the range observed during the 2019 pivot point. Similarly, the price ratio of Cardano (ADA) against Bitcoin is at a similar level to the quantitative tightening conclusion in 2019, with the current risk value of the cryptocurrency remaining in a low range.
Altcoin Performance and Regulatory Environment
XRP offers a different regulatory environment compared to previous cycles, with the cryptocurrency previously facing restrictions due to legal disputes with the Securities and Exchange Commission (SEC). However, these legal obstacles have been removed, and the XRP to Bitcoin pair is trading at levels comparable to those seen at the end of quantitative tightening in 2019, with a current risk score of 39. Market analysts note that liquidity conditions tend to shift at the end of quantitative tightening cycles, potentially affecting the performance of risky assets.
A manufacturing PMI reading above 50 indicates economic expansion, according to economic data standards. The three altcoins have historical price patterns and technical indicators that some analysts see as important for long-term positioning, although cryptocurrency markets continue to be subject to volatility and regulatory developments. As the Federal Reserve’s quantitative tightening cycle nears its completion, investors and analysts are closely watching the potential impact on cryptocurrency markets.
Conclusion and Future Outlook
In conclusion, the potential end of quantitative tightening and a rise in the manufacturing PMI above 50 may signal the start of bullish phases in cryptocurrencies such as XRP, Chainlink, and Cardano. While cryptocurrency markets are known for their volatility, analysts and investors are closely watching these altcoins for potential opportunities. For more information on cryptocurrency market trends and predictions, visit https://crypto.news/xrp-chainlink-and-cardano-eyed-as-altcoin-plays-on-fed-liquidity-shift/.
