On Friday, several major altcoins fell as the market as a whole fell. The total market capitalization of the cryptocurrency market fell by 2.8 percent to $2.08 trillion. Are The Leading Altcoins To Fall As US Inflation Soars To 40-Year Highs
According to CoinMarketCap.com data, altcoins led the decline, increasing the bitcoin dominance index by 0.5 percent to 40.1 percent.
The drop was caused by the market’s reaction to US inflation reaching a four-decade high of 7.5 percent in January. The cost of goods and services is expected to rise as a result of the expected rise in interest rates.
Following a rally earlier in the week, XRP, Polygon’s MATIC, Solana’s SOL, and Polkadot’s DOT have all fallen 7.5 percent in the last 24 hours.
The best performer was Avalanche’s AVAX token, which lost 0.4 percent of its value, while bitcoin and ether both lost nearly 3 percent and 5 percent, respectively.
XRP fell 10 cents this week after falling to $0.91 earlier in the week. The tokens fell below $0.80 in the early Asian hours of Friday, as predicted by CoinDesk earlier in the week.
After Friday’s decline, the RSI (relative strength index), a price chart indicator that measures price changes, rose above 50, indicating that a brief recovery is possible.
If the RSI is above 70, assets may be experiencing a correction, while if it is below 30 it indicates that a recovery is taking place.
A Drop Below $0.78 Could Signal A Deeper Correction And Open The Door To A Quick Path To $0.75
According to FxPro markets trader Alex Kuptsikevich in an email to CoinDesk.
“If all of February’s gains are completely erased in the coming week, it would be safe to speak of a new depressed period with a long-term downside potential of 50% to $0.3,” he said.
SOL has now fallen below the $110 support level after breaking through it earlier this week. Prices could fall back to the previous support level, which was around $100.
According to Kuptsikevich, SOL may suffer a setback: “Since November, markets had been oversold, and the rise from January 28 to February 7 appeared to be a technical rebound.
However, the current expansionary surge is rapidly fading. Unless the overall market improves, we predict that this coin will continue to lose ground faster than bitcoin and ether “That is what he said.
The top memecoin SHIB fell 4% last week after a series of rallies the week before. Shiba Inu’s SHIB surged 40% on Monday and Tuesday after rumours of an unspecified activity with Coinbase surfaced.
Shiba Lands’ LEASH token increased by 43 percent on Wednesday after it was announced as a metaverse that would allow LEASH token holders to purchase parcels of virtual land in an upcoming game.
One Of The Few Altcoins With A Market Cap Of More Than $1 Billion That Saw Gains
THETA’s value increased by 15% after co-founder Mitch Liu announced that Replay, a blockchain tracking and video licencing platform, had received seed funding and a grant.
According to Liu, ThetaPass’ video API, peer-to-peer video infrastructure, and NFTs were developed by experienced technologists and entrepreneurs to provide a more equitable share of revenues to both content creators and end users.
THETA was trading at $4.18 at the time of writing.