Crypto Market Faces Major Pullback Following Fed Interest Rate Cut
The 25 basis points drop in Federal interest rates, typically seen as positive, led to a significant pullback in the crypto market. Bitcoin's decline triggered a crash in altcoins, many of which fell below critical support levels.
Amid this volatility, questions arise regarding the altcoin market's potential for recovery before 2025.
Jerome Powell’s Final Cut before 2025
The initial positive effects of the Fed's interest rate cuts quickly shifted to global concern. Jerome Powell, head of the Federal Reserve, indicated that future rate cuts in 2025 may be less aggressive than traders anticipated.
This hawkish outlook has increased uncertainty in both the crypto and stock markets, leading to heightened trader anxiety and record liquidations.
Altcoins Crash amid Hawkish Comments
As Bitcoin declined, the total crypto market cap, excluding Bitcoin and Ethereum, fell to $954 billion, briefly bouncing back to $992 billion after testing the 200-day exponential moving average.
In the last 24 hours, the crypto market experienced liquidations totaling $780.56 million, including $143.76 million in Bitcoin and $124.51 million in Ethereum.
Notably, altcoins such as WIF, BONK, Fantom, and Pepe have seen considerable declines, each losing approximately 10-11%. This reaction may represent an overreaction to news, prompting some traders to view it as an opportunity to acquire assets at lower prices.
Top Altcoins to Pay Attention to
In a market characterized by discounts, key altcoins are positioned for accumulation at significant support levels. Here are three top altcoins to consider during this market correction.
Solana (SOL)
Solana shows a potential buy-the-dip opportunity within a falling channel pattern on the 4-hour chart. Despite a 7.53% drop, SOL maintains support above $200.
Price action suggests a double-bottom reversal with bullish divergence in the RSI line. If Solana bounces back, it could reach $233 to test the overhead trendline, potentially extending to $260 before 2025.
SUI (SUI)
SUI demonstrates a bullish reversal from a 24-hour low of $4.07, forming an intraday Doji candle. This reversal is supported by the 20-day EMA and a long-term support trendline.
The price recovery has pushed SUI above the $4.35 level, likely allowing it to test the rising channel's overhead trendline. A successful rally could see SUI reach the R2 pivot level at $5.2359, marking a new all-time high.
Dogecoin (DOGE)
Dogecoin has faced a substantial decline of 9.13% recently, down 12.25% over the past week, dropping to crucial support at $0.3391.
Despite the downturn, DOGE remains above the S1 pivot support at $0.3584, with the RSI showing bullish divergence, indicating a potential rebound. If Dogecoin rebounds, it could target the R2 pivot at $0.5159, potentially surpassing the $0.50 psychological mark and achieving a new 52-week high.