Wednesday’s remarks by Federal Reserve Chair Jerome Powell sent shock waves throughout the cryptocurrency market, resulting in a loss of $34.186 billion or 3.09% for the overall cryptocurrency market cap. The crypto market, however, is attempting to recover, with the total market cap rising by 4.46%, bringing it to $1.17 trillion. The National Association of Securities Dealers Automated Quotations composite index (Nasdaq), which the crypto market closely follows, fell by 1.6% on Wednesday, but futures were up in premarket trading, suggesting that tech stocks and cryptocurrencies may recover losses. Along with these events, regulatory risks increased for cryptocurrency this week when the SEC investigated Coinbase and Tron founder Justin Sun for possible securities law violations.
The SEC sent Coinbase a Wells notice warning of possible enforcement action related to several of its services, and Coinbase’s share price fell over 8% before slightly recovering. Additionally, the SEC charged Sun and his associated companies with illegally selling and manipulating markets for the TRX and BTT cryptocurrencies, causing the price of TRX to drop by over 10%. However, TRX has made a recovery of about 6.32% so far today.
The combination of Fed policy signaling higher interest rates and regulatory scrutiny is creating volatility in cryptocurrency markets. The pace and impact of regulators’ actions are highly uncertain, as is the economic fallout from rising rates. However, cryptocurrencies have weathered regulatory and macroeconomic changes in the past, and many investors remain bullish about the growth potential of blockchain technology and digital assets. The coming days and weeks may indicate whether cryptocurrencies can continue their recovery after the dual blows from the Fed and the SEC.
Given the current macroeconomic climate, it is crucial to consider how recent events may affect investment decisions. Based on a combination of fundamental and technical analysis, several cryptocurrencies have been identified as among the best ones to buy now.
Algorand (ALGO) is ramping up its efforts to attract developers and bolster its network’s value proposition. Despite struggling to break out of its current range, the network’s recent development activity surge could set the stage for a bullish rally. Like other top blockchain networks, Algorand is positioning itself for the next major market rally by attempting to gain a competitive edge over its rivals. To that end, the network has launched a video series aimed at encouraging developers to create more dApps and other projects within its ecosystem.
Algorand’s technical indicators are showing mixed signals as the coin’s price hovers around $0.2152. The significant Exponential Moving Averages of 20-day ($0.2184), 50-day ($0.2289), and 100-day ($0.2387) EMAs are all trading above ALGO’s price which indicates that the current short-term to long-term bias for ALGO is bearish. The RSI stands at 46.53, indicating a neutral market sentiment. This suggests that neither buyers nor sellers have taken full control of the market.
Love Hate Inu (LHINU) is a popular social media platform known for its exceptional character illustrations in its marketing efforts. Recently, they introduced a blockchain-based voting system that enables the anonymous expression of opinions on diverse topics. The “Vote-to-Earn” mechanism enables users to receive digital tokens by voting, with tokens purchasable using cryptocurrency or conventional currency. The project is currently in its presale phase, aiming to allocate 90% of the tokens to the LHINU community, with the remaining 10% set aside for distribution in crypto exchange listings.
Litecoin experienced a notable development last month with the release of its “Hard Fork” by Australian developer Anthony Guerrera. This fork incorporates features of the Ordinals protocol to enable non-fungible tokens (NFTs) on the Litecoin network, similar to capabilities on Bitcoin and other blockchains. Developed as a ‘Layer 2′ solution on Bitcoin, the protocol’s integration extends Litecoin’s capabilities to support NFT creation and exchange.
Fight Out (FGHT) is looking to disrupt the fitness and digital-asset industry with its train-to-earn model, which will reward gamers with in-game coins for exercising and completing challenges. Users will be able to exchange reward tokens for discounted gym memberships, exercise equipment, and apparel. Acquiring FGHT tokens valued at more than $50,000 entitles investors to earn up to 67% in bonuses, while extended-term holders are eligible for 10% airdrops. The price of FGHT tokens will rise by 28% weekly, with a ceiling price of $0.0333. With over $5.767 million in funding so far, the platform’s growth potential is evident.
Chainlink (LINK) is on the rise, jumping 5.52% so far today to reach $7.769 after falling 2.74% on Wednesday. Several technical indicators suggest LINK could be poised for a recovery after its recent losses. The price is trading above all the EMAs, indicating a bullish trend, and the RSI is at 54.83, suggesting buying pressure is outpacing selling pressure. The MACD indicator is also flashing a bullish signal, with the MACD histogram above the zero line and growing, indicating increasing bullish momentum.
In conclusion, the combination of Fed policy signaling higher interest rates and regulatory scrutiny is creating volatility in cryptocurrency markets. Despite this, cryptocurrencies have weathered regulatory and macroeconomic changes in the past, and many investors remain bullish about the growth potential of blockchain technology and digital assets. It is crucial to consider recent events’ impact on investment decisions while analyzing fundamental and technical indicators. Based on these factors, ALGO, LHINU, LTC, FGHT, LINK, CCHG, and TARO have been identified as among the best cryptos to buy now.