Bitcoin, Ethereum, and XRP experienced slight gains on Wednesday as traders prepare for the pivotal U.S. FOMC rate decision set for 2 PM ET. Unlike earlier bear markets, traders are observing shorter bearish cycles followed by swift price recoveries.
The impending FOMC meeting is anticipated to incite greater volatility in the prices of these leading cryptocurrencies, potentially creating buy-the-dip opportunities or a chance for traders to realize profits amid a prolonged bear market.
Shifting Trader Sentiment for Bitcoin, Ethereum, and XRP
Recent data indicates that Bitcoin (BTC), Ethereum (ETH), and XRP traders have dialed back their activity in the derivatives market over the past 24 hours. According to a decline in trade volume listed, BTC and ETH saw drops of nearly 11% and 7%, respectively, while XRP experienced a significant decline of around 14% over the same period.
Traders are becoming more risk-averse in light of approximately $89 million in liquidations for these top cryptocurrencies in the last day.
Open Interest—a critical derivatives metric—indicated a slight increase, with BTC, ETH, and XRP observing rises of 1.42%, 4.90%, and 1.49%, respectively.
On-Chain Analysis for BTC, ETH, and XRP
Analysis from recent on-chain data reveals a positive funding rate for Bitcoin on Binance, showing optimism among derivatives traders to expect price appreciation, even amid reduced trading activity. Meanwhile, Ethereum’s supply held by whales remains steady, while Bitcoin supply held by funds has been consistently decreasing. XRP active addresses showed an uptick on Wednesday after experiencing a downward trend the previous day.
This mixed on-chain data presents a cautiously optimistic outlook for Bitcoin and XRP while suggesting Ethereum prices could remain stable amidst the forthcoming volatility related to the FOMC rate decision.
On the Bitcoin blockchain, the ratio of daily on-chain transactions resulting in profits is nearly double that of loss transactions, indicating a potential for profit-taking among traders who entered at lower prices. Ethereum and XRP show limited opportunities for profit-taking, according to recent charts.
Market Reactions to Trump Stance and FOMC Meeting
A legislative push for a Stablecoin bill is progressing, hinting at a significant shift towards a blockchain-integrated financial system. Notable figures, including industry leaders, are exploring stablecoins as a mechanism to bolster the dollar’s global reserve status.
Market analysts suggest that the FOMC’s impending decision could heighten volatility with traders poised to react based on the Fed’s signals regarding future interest rates amid ongoing inflation and economic growth. Pro-crypto policies may mitigate overall market impact.
Recent assessments indicate Bitcoin could trade between $80,000 and $86,000 post-FOMC, with Ethereum forecasting a range between $1,800 and $2,100, reflecting potential fluctuations influenced by macroeconomic trends and investor sentiment.
Bitcoin Aims for $87,000, Ethereum Eyes $2,100
As signs of recovery manifest, Bitcoin seeks to reclaim the $87,000 mark, currently trading around $83,517. Technical indicators suggest bullish momentum, with the Relative Strength Index (RSI) indicating upward movement.
Ethereum, gaining 2.39% throughout the day, is approaching a critical resistance level of $2,000 and aims for support at $2,100. This resurgence constitutes nearly 7% growth in Ethereum’s price during this phase.
While the Ethereum price chart supports a potential recovery trend, a major decline in Bitcoin could affect Ethereum’s stability as well.
XRP Price Forecast: Impending Movements
XRP is anticipated to rally nearly 7% to challenge key resistance levels at $0.2707, with promising signs of bullish momentum indicated by an upward sloping RSI.
Traders are closely monitoring the ongoing legal developments concerning Ripple, as these factors, combined with the FOMC rate decision, could play a substantial role in shaping XRP’s short-term price trajectory.
