Investigate the leading altcoins to consider purchasing if Federal Reserve Chair Jerome Powell adopts a dovish stance and indicates potential interest rate reductions in June.
The cryptocurrency market is experiencing an uptick today, May 7, in anticipation of the FOMC meeting where Fed Chair Jerome Powell is likely to reveal a decision regarding interest rates.
The market has already factored in no rate cuts, with particular attention on Powell's address and the possibility of him hinting at reductions in June.
Should the Fed Chair deliver a dovish message, altcoins from the USA will present a favorable opportunity for crypto investors, as they are expected to achieve significant gains.
Altcoins on Edge Ahead of Fed’s Powell Speech
There is a general agreement among investors that the Federal Reserve will maintain interest rates within the range of 4.25% to 4.50% during today's meeting. Nevertheless, focus is now turning to the remarks that Powell will deliver in his address, as noted by analyst Daan Crypto.
The Federal Reserve is anticipated to maintain the current interest rates. Market participants will be keenly observing for any shifts in their tone that may indicate a dovish or hawkish stance, which has shown considerable variability lately.
According to the CME FedWatch Tool, 30% of investors anticipate that the Federal Reserve will reduce interest rates in June.
This percentage may fluctuate depending on the statements made by Powell today. Should the speech foster a sense of optimism, it is likely that cryptocurrency prices, particularly those of U.S. altcoins, will experience a surge as investors hasten to make purchases.
Furthermore, it is anticipated that President Trump will respond to Powell's address today and the Federal Reserve's decision not to reduce interest rates.
Such a response could potentially increase market volatility, reminiscent of last month when cryptocurrency values plummeted following Trump's public criticism of Powell.
Should Powell's remarks be perceived as hawkish, traders ought to prepare for a significant decline in the prices of Bitcoin and alternative cryptocurrencies, as this would indicate a stronger dollar, thereby impacting the demand for riskier assets.
In a communication to investors, the Commonwealth Bank of Australia recognized this possibility, stating,
An additional potential factor contributing to the dollar's strength is the Federal Reserve meeting scheduled for today; should Chair Powell adopt a hawkish stance, it would demonstrate his autonomy from political pressures.
As discussions regarding the potential effects of this event on cryptocurrency valuations intensify, investors might contemplate purchasing U.S. altcoins, which are expected to perform favorably should Powell adopt a dovish stance and his address also endorses a recovery for the U.S. dollar.
USA Altcoins to Buy Today For Notable Gains
Among the top altcoins in the USA to consider for significant returns today are Ripple (XRP), Solana (SOL), and Chainlink (LINK).
These cryptocurrencies exhibit a positive market sentiment and possess robust fundamentals that may support a substantial price rebound, depending on the Federal Reserve's decisions following the FOMC meeting.
XRP Price Targets $2.94
Should the Federal Reserve's address be favorable for cryptocurrency assets, XRP stands out as one of the leading alternative coins in the United States to consider for significant profits, particularly as it approaches resistance at the 50-day Simple Moving Average of $2.17. If it manages to surpass this threshold and targets $2.40, it will initiate the next upward movement towards $2.94.
This bullish trend is contingent upon the AO bars transitioning to green and increasing, signaling positive momentum.
Solana Price Defends Support, Aims for $180
Solana's price is currently holding steady at a crucial support level of $139, with the volume histogram indicating that buyers have been in control over the past three days.
Additionally, the RSI positioned above 50 supports a positive price forecast for Solana, while the tightening Bollinger bands hint at a potential breakout.
Should this breakout materialize, traders can expect a rise beyond $180, positioning SOL as one of the top altcoins from the USA to monitor.
Chainlink Price Eyes Gains As Long Positions Surge
The Chainlink price prediction appears optimistic, as the long/short ratio on the Binance exchange indicates that 65% of traders have initiated long positions on the token.
This accumulation of long positions implies that the majority of futures traders are optimistic about this USA altcoin and expect significant profits.
Such a perspective may attract additional investors to purchase LINK, especially if the Fed Chair delivers a dovish address.
