XRP Drops 6% as Cardano Surges Dozens of Percent in a Week
Cardano (ADA) rose 20% to $0.9595 over the past week, driven by rumors of the โGrayscale Cardano Trust ETFโ registration on Delawareโs official state website. Meanwhile, XRP showed the opposite trend, dropping 6% during the same period.
In July, the Producer Price Index (PPI) jumped 0.9% month-on-month and 3.3% year-on-year, well above expectations. PPI is an important inflation indicator, and this hotter-than-expected data reduces the likelihood of a Federal Reserve rate cut in the near term.
Myriad market predictions note a 7% decline in the probability of a rate change next month. This news caused the crypto market capitalization to fall 2.46% to $4.05 trillion, with Bitcoin dropping to $119,000, after previously reaching a new all-time high of $124,000.
Technically, ADAโs Relative Strength Index (RSI) stands at 69, approaching overbought territory but not yet critical, while the Average Directional Index (ADX) at 27 indicates a well-established bullish trend. The 50-day EMA is above the 200-day EMA, forming a โgolden cross,โ which usually signals strong upward momentum.
Despite potential corrections or a double-top pattern, the technical structure still supports the upward trend, with support levels at $2.95 and $2.69 and resistance at $3.24 and $3.39.
Overall, analysts assess that the chances of ADA rising remain higher than falling, in line with positive market sentiment from Myriadโs predictions.
