The US dollar is causing massive pressure on the cryptocurrency market once again
The cryptocurrency market is under pressure again as the US dollar aims for another rally that could bring it back to its multi-year high. Meanwhile, XRP and Cardano Price performance causes concern.
DXY is on its way to the top
In the past 24 hours, the US dollar was targeting new highs as it reached the multi-year trend resistance level for the second time in two weeks. Resistance was previously identified as a reversal point for the currency and the beginning of a recovery for vulnerable markets, including cryptocurrencies.
DXY’s strong performance may be the main reason behind the decline of Bitcoin and other cryptocurrencies today. In the past few hours, BTC lost more than $300 in value and broke the $19,000 support level, hitting the lower end of the consolidation range.
Unfortunately, technical analysis is a secondary factor for DXY, and its performance is mostly related to the monetary policy of the United States. Until the Fed’s tipping point, the US dollar will continue to rise as higher interest rates make stable investment opportunities more interesting, while risky assets like Bitcoin and other cryptocurrencies suffer in a market like this.
Bitcoin’s inverse correlation with DXY recently hit a record high as the number one cryptocurrency closely tracks the performance of the US Dollar. The same trend applies to stocks. Unfortunately, the Bitcoin relationship did not show itself during the recovery in the stock market, which raised more fears and risks among its owners.
Cardano and XRP Fall Together
Cardano and XRP are moving in similar ways in terms of avoiding general market conditions. However, the independence of both matters does not play in their favour. Both Cardano and XRP It has been experiencing problems in the market in the past few weeks as ADA has lost more than 20% of its value.
XRP has not gone through such a sharp correction but still faces some serious problems in the market by rejecting around the local price level and pushing below the 50-day moving average, which acted as a buffer between the downtrend and the uptrend.
Unfortunately, most of the technical and market signals show that XRP will continue to decline as volume profiles remain at extremely low levels over the past few days and investors are in no rush to support a continued rally on the asset.
The rule applies to Cardano, which has been dropping to multi-month lows over the past few weeks so far. Obvious issues with ADA profitability are nothing new in the cryptocurrency market as it remains one of the worst performing assets in the entire industry. With the last drop, the situation became even worse.