• 1 The Crypto market has been rising strongly after the interest rate hike stopped.
• 2 XRP and ADA are closely held between consolidation zones, see which one will make a breakout first.  

The cryptocurrency market has been exploding since the end of 2023. The prominent currency, bitcoin has surged past $45,000 at one point today, reaching its highest level since April of 2022. It closed just below that level. 

Moreover, other cryptos like Cardano (ADA/USDT) and Ripple (XRP) are also on the headlines. It implies that the investors are coming back into the crypto market. 

Bitcoin ETFs have driven the digital currency higher in 2023. Investors expect SEC approval for ETFs tracking Bitcoin’s spot price.

Interest Rates and Crypto Currencies

According to market experts, the most important change from the previous cycle is the interest rate environment, which is now moving towards rate cuts. 

When the interest rates drop, the money in the economy starts flowing. It makes people start accepting more volatile investments rather than just government bonds, say stocks and even cryptocurrencies. 

However, these cuts are part of a normalization process and are still positive real rates. This shift from zero lower bound and negative real rates is the most fundamental change. Analysts predict that the tenure will settle in the range of 3% to 4% as the cycle progresses, with some fluctuations along the way. 

Additionally, it’s important to focus on valuations, quality fundamentals, and other important factors when real rates are positive. Market experts expect three cuts this year, starting mid-year and occurring once a quarter. 

It means with each cut, the flow of money into the above-discussed volatile assets will increase. Further propelling the value of cryptocurrencies. 

The market may face overextension and pullback, but the probability of a soft landing is higher. Even if there’s a recession, it should be short-lived and won’t greatly impact the market’s long-term performance.

Cardano vs. Ripple

Cardano is a heavyweight contender in the crypto arena. It boasts a flexible, eco-friendly, and scalable blockchain for smart contracts. It opens doors to a universe of possibilities say, DeFi apps, fresh tokens, exciting games, and beyond!

Financial institutions seeking smoother global pathways for money are turning to Ripple, a network that speeds cross-border payments to a brisk pace. 

Instead of traditional methods, Ripple’s approach relies on XRP, a digital currency known for its effortless flow. This pairing enables swift and cost-effective international transactions, potentially easing the burdens often felt in the financial world.

Cardano (ADA/USDT) Technical Analysis

According to an analyst of thecoinrepublic, the predictions for ADA price in 2024 came bullish. The cryptocurrency could see a significant increase of up to 2.5 times its current value. 

It is expected to reach a new 52-week high in 2024. After conducting a thorough analysis of the weekly chart patterns, some bullish signals were observed. 

It is believed that the ADA coin could potentially reach a maximum value of $0.6784 in 2024. Despite the fall, the price of ADA is trading sideways and seems to be accumulating energy for a further move. 

Currently, the ADA price is within a wide channel and is expected to consolidate in the range of $0.544 to 0.672 for the current week. At press time, ADA is trading at $0.605. 

Over the last 25 months, Cardano was under a bearish influence, and it was not until the beginning of Q4 2023 that it triggered a strong rebound. It is believed that the bulls used their accumulated strength during the prolonged squeeze to lift the price by over 180%. 

Currently, the ADA price seems to be in a critical phase where a bullish trend is on track. During its previous rally, the crypto went through a recovery and reached new highs above $3 during mid-2021.

Since then, it has been in a bearish trend. Nevertheless, the recent rebound has shown sufficient strength, and the recovery plot has been confirmed. 

As a result, the ADA coin price is expected to break the immediate resistance level of $0.6721. After this breakout, the bullish investors will seek the level of $0.899. The target price for the current analysis is at $0.911

Ripple (XRP/USDT) Technical Analysis

XRP’s price consolidated between $0.5425 and $0.32 from Aug 2022 to mid-Jul 2023. Recently, the news that XRP is not secure caused the price to soar and break through the previous year’s caps.

Looking at the daily chart, we can see a strong support area that includes the 50-day and 150-day moving averages, as well as the immediate support level at $0.61. 

This level has been able to stop multiple bearish attempts, indicating that there is significant demand for XRP at this price point.

Furthermore, a bullish signal has been generated by the recent golden crossover, which occurs when the 150-day moving average crosses over the 50-day moving average. It suggests that XRP has positive long-term prospects.

The resistance levels on the other hand are also strongly held by the bears. For instance, the immediate resistance level is at $0.6984. If the bullish investors can break this, there is a likelihood that the price will travel towards the target price of $0.8274.

A Race to $1, Who Will Finish First?

The Trend analysis in the weekly chart pattern shows that XRP is on a more stable uptrend with the demand zones being created along the way. On the other hand, ADA has just come above the 150-week EMA and is sustaining above it. 

Keeping the subjects related to the market neutral, there is strong resistance in the XRP coin price before the $1 mark. Now combining both scenarios, the ADA coin will likely reach the $1 mark before the XRP.

Conclusion

Ripple is a centralized exchange founded in 2012, while Cardano is a heavyweight contender in the crypto arena with a flexible blockchain for smart contracts. There is strong resistance in the XRP coin price before the $1 mark, and the ADA coin will likely reach the $1 mark before XRP.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.