Markets are bracing for a run on the US dollar as the debt ceiling is very likely to rise.
in the last market developments, the US dollar has been demonstrating bullish momentum, approaching the 200 EMA. If a breakout occurs, it could drive the dollar even higher. This rise in the US dollar could put downward pressure on cryptocurrencies and other financial assets, causing their value to decline.
The correlation between the strength of the US dollar and the performance of cryptocurrencies is usually inversely proportional. As the value of the dollar rises, the prices of cryptocurrencies tend to fall, and vice versa. The reason behind this is simple: a stronger dollar makes it more expensive to buy cryptocurrencies, which are normally priced in US dollars. This subsequently reduces demand and leads to lower prices.
The increase in the value of the US dollar could be related to the upcoming resolution of the debt ceiling issue. As the US government moves closer to a solution to this fiscal challenge, investor confidence in the dollar appears to be growing. This increased confidence is driving demand for the dollar, thus increasing its value.
If the dollar breaches the 200 EMA threshold, it could lead to another crypto market crash. Cryptocurrency investors should therefore prepare for a possible market downturn.
Whales come out of Cardano
Despite the questionable behavior of the whales, Cardano it has been moving up. This price rally comes despite a substantial drop in network activity among holders of large amounts of Cardano ADA.
According to data from IntoTheBlock, there has been a noticeable decrease in the number of large transactions and wallets on the Cardano network. This change implies a significant exodus of whales from the net, which traditionally would have caused the price of ADA to drop. However, in a counterintuitive twist, the ADA price exhibits an upward trajectory.
One hypothesis to explain this phenomenon is based on the idea that whales contribute significantly to the selling pressure on Cardano. In the cryptocurrency market, whales often have substantial influence due to the large volumes of crypto assets they hold. They can create selling pressure when they choose to liquidate large amounts of a cryptocurrency, which can drive prices down.
Conversely, when the whales leave the network, as appears to be the case with Cardano, the selling pressure subsides. This drop in selling pressure could be the driving factor behind the current rise in the ADA price.
The bullish price move, despite the departure of the whales, can also be seen as a testament to the strength of the Cardano community. It indicates that smaller investors and participants in the Cardano ecosystem are capable of sustaining the network, demonstrating the potential for decentralization and resiliency within the Cardano community.
Shiba Inu loses momentum
During last week, Shiba Inu (SHIB), one of the most recognized meme coins, has shown a remarkable level of price stability. SHIB's price has held steady at roughly $0.0000088 for the past six days, marking the lowest volatility level in years for the typically unpredictable token.
This unusual stability may sound positive for traditional financial assets, but it is somewhat problematic for meme coins like Shiba Inu. The main appeal of these coins to retail investors lies in their extreme volatility and potential for quick and substantial profits. But with SHIB's price stagnating, its appeal is fading.
The timing of this stagnation coincides with what can be referred to as โmeme coin seasonโ in the cryptocurrency market. Once considered an outlier in the digital currency landscape, Meme coins now take center stage. However, as the market becomes saturated with an ever-increasing variety of these coins, the meme coin trendsetters Shiba Inu and Dogecoin seem to be losing their luster.
