As we approach the end of June, eyes in the cryptocurrency market are turned towards July. July, considered one of the critical turning points of the year, will bring clarity to both tariffs and the FED's interest rate policy. These developments may significantly impact prices by reducing uncertainties in the altcoin market.
One of the most remarkable events of July will be the tariff negotiations that will end on July 9. At the same time, the inflation report to be announced before the FED meeting on July 15 is in the focus of investors. Employment and inflation data coming from the US will determine how FED members will approach interest rate cuts.
Economist Waller indicated that, "As the rate of job creation declines, we should not expect a major crisis in employment," suggesting that interest rate cuts may come onto the agenda. If employment data falls short of expectations, pressure for interest rate cuts on the FED may increase.
Tariff negotiations are another important agenda of the crypto market. The response of the European Union to the latest tariff proposal from the US and the results of negotiations with countries like India, Japan, and South Korea may increase volatility in the markets. If the EU does not make a counter-move, the markets may enter a rapid recovery process.
Expectations that the impact of tariffs on inflation will remain limited may facilitate the FED's decision to cut interest rates.
July Expectations in Altcoins
In light of these developments, two different scenarios arise for SOL, XRP, LINK, and AVAX. If the tariff negotiations yield positive results and a clear roadmap regarding the FED's interest rate policy is established, these altcoins may move upward. Otherwise, the prolongation of uncertainty may lead to increased selling.
SOL: It carries the risk of a pullback as long as it does not exceed the level of $158. If this resistance is surpassed, an upward movement towards the highest levels of the year is possible.
XRP: A significant jump is expected in case the ongoing lawsuit process is completely closed.
LINK: If it remains above $13.75, levels of $15.3 and $17.35 can be targeted.
AVAX: If a recovery occurs in July, it may retest the resistance of $22.5.
July will be a process closely linked to global economic and political developments for the altcoin market. Therefore, it will be beneficial for investors to closely follow the developments and shape their strategies accordingly.
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