Jerome Powell, the soon-to-be-replaced head of the Federal Reserve, announced the last rate cut for 2024. However, the bullish news comes with a special comment from Powell, turning the crypto and global stock markets red. Here’s why.
By Vishal Dixit
Edited by Julia Sakovich
Updated
4 mins read
The 25 bps drop in Federal interest rates, generally considered a bullish blessing, resulted in a massive pullback in the crypto market. Bitcoin’s BTC $79 979 24h volatility: 2.8% Market cap: $1.58 T Vol. 24h: $89.74 B downfall triggered a crash in altcoins, with many breaking under their crucial support levels.
Amid the volatility spike, will the altcoin market manage a quick recovery before 2025?
Starting with the Fed interest rate cuts, the initial positive effect quickly turned into a global scare. In the announcement, Jerome Powell, the head of the Federal Reserve, projected that the rate cuts in 2025 may not be as aggressive as traders expected.
With hawkish comments, the uncertainty in the crypto and stock market has significantly increased. With the traders turning nervous, liquidations break through the roof.
As Bitcoin crashed, the total crypto market cap, excluding Bitcoin and Ethereum, dropped to a low of $954B. Testing the 200-day exponential moving average line to bounce back a little to the $992B.
In the last 24 hours, the crypto market has recorded a total liquidation of $780.56M. This includes $143.76M in Bitcoin and $124.51M in Ethereum ETH $1 585 24h volatility: 2.4% Market cap: $190.72 B Vol. 24h: $46.76 B .
In particular, altcoins like WIF WIF $0.35 24h volatility: 5.6% Market cap: $346.76 M Vol. 24h: $274.14 M , BONK BONK $0.000010 24h volatility: 6.0% Market cap: $793.02 M Vol. 24h: $152.68 M , Fantom [NC], and Pepe PEPE $0.000006 24h volatility: 6.0% Market cap: $2.72 B Vol. 24h: $1.72 B have seen significant drops in the last 24 hours. Thus, the DeFi and meme coins are each losing around 10-11%.
This could be an overreaction to the news, and some traders might view this as an opportunity to buy these assets at a discount. In simpler terms, the crypto market reacts strongly to the Fed’s future outlook, causing some panic and selling.
However, this might also present a chance to buy these assets at a lower price if you think the market will bounce back.
In a market filled with discounts, top altcoins are ready for accumulation at key support levels. Here are the three top altcoins to buy in this market correction.
With a positive cycle chance in a falling channel pattern in the 4-hour chart, Solana SOL $111.3 24h volatility: 7.6% Market cap: $57.32 B Vol. 24h: $9.85 B presents a buy-the-dip moment. Despite witnessing a crash of 7.53% last night, creating a bearish engulfing candle, the SOL price sustains dominance above $200.
Furthermore, the altcoin price action hints at a double-bottom reversal with a bullish divergence in the RSI line. Based on the Fibonacci levels and the falling channel, the bounce back in Solana could reach $233 to test the overhead trendline.
If the rally extends, the breakout run will pump the SOL price to $260 before 2025.
With a bullish reversal from the 24-hour low of $4.07, SUI SUI $2.07 24h volatility: 11.4% Market cap: $6.70 B Vol. 24h: $2.09 B price action forms an intraday Doji candle. The reversal comes from the 20-day EMA and a long-coming support trendline.
The bullish reversal from the underlying support floats the market price above the $4.35 level or the R1 pivot resistance mark. As the recovery gains momentum, the altcoin will likely test the overhead trendline of the rising channel.
In such a case, the SUI price will R2 pivot level at $5.2359, creating a new all-time high.
With a massive crash of 9.13% last night, Dogecoin DOGE $0.15 24h volatility: 6.3% Market cap: $22.45 B Vol. 24h: $3.65 B is down 12.25% in the last 7 days. The retracement drops the DOGE price to a crucial support at the $0.3391 mark.
Despite the downfall, the altcoin price clings to the S1 pivot support at $0.3584. Furthermore, the RSI line shows a bullish divergence, increasing the upside chances.
Based on the pivot levels, if the Dogecoin prices take off for a rebound rally, the next target could be the R2 pivot at $0.5159. Thus, the meme coin shows potential to surpass the $0.50 psychological mark and create a new 52-week high.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
