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Bitcoin, Ethereum, and XRP exhibit strong bullish momentum following the latest US Consumer Price Index (CPI) report indicating easing inflation pressures.
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The cooling US CPI has sparked optimism across the crypto market, with significant gains observed in major tokens and several altcoins, reflecting renewed investor confidence.
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According to COINOTAG, “The positive inflation data increases the likelihood of a Federal Reserve rate cut, which historically supports upward trends in cryptocurrency valuations.”
Bitcoin, Ethereum, and XRP rally as US CPI cools, signaling potential Federal Reserve rate cuts and renewed bullish momentum in the crypto market.
Bitcoin Surges Past $110,000 Amid Optimistic Market Sentiment
Bitcoin has demonstrated robust performance by retesting the critical $110,000 level, reaching an intraday high of $110,384.22. Despite a slight dip in trading volume by 10.41% to $52.11 billion, Bitcoin maintains a dominant market share of 62.91%, with a market capitalization of approximately $2.16 trillion. The price action remains above key Exponential Moving Averages (EMAs) on the daily chart, with the 20-day EMA providing strong support near $106,332 and the 200-day EMA stabilizing around $92,300. This technical setup indicates sustained bullish momentum, reinforced by the Moving Average Convergence Divergence (MACD) indicator, which shows a rising green histogram and a positive convergence of the 12 and 26-day EMAs. Should Bitcoin decisively break above $110,000, it is poised to challenge its all-time high near $111,970. Conversely, weakening buying pressure may prompt a retest of support levels at $107,218 and $106,332.
Ethereum Reclaims $2,800, Signaling Renewed Bullish Trends
Ethereum has surpassed the $2,800 threshold for the first time since late February, closing at $2,868 and commanding a market capitalization of $341.47 billion, representing 9.89% of the total crypto market. This marks an increase from 9.01% over the past month, underscoring growing investor interest. The Relative Strength Index (RSI) has steadily climbed from its neutral midpoint of 50 to nearly 69, approaching the overbought territory at 70, which suggests strong upward momentum. The 50-day EMA is trending upwards, while the 200-day EMA remains steady near $2,471, hinting at a potential Golden Cross—a bullish signal indicating sustained price appreciation. If bullish conditions persist, Ethereum could test resistance near $3,000. However, a reversal could see prices retreating to support levels around $2,602 and $2,471.
XRP Exhibits Volatility with Bullish Indicators Amid Market Rally
XRP experienced intraday price fluctuations between $2.28 and $2.34, settling at $2.3165 with a daily trading volume of $3.003 billion. Its market capitalization stands at $135.23 billion, accounting for 3.94% of the crypto market. Technical analysis reveals a bullish crossover in the Simple Moving Average (SMA), providing a solid support foundation. Additionally, the Stochastic RSI has surged into overbought territory for the first time since May, with values at 97.12 and 93.18, signaling strong buying momentum. Should this bullish trend continue, XRP may test upper resistance levels at $2.57 and $2.94. Conversely, the support zone near $2.14 remains critical for maintaining price stability.
Altcoin Market Gains Reflect Broader Crypto Bullishness
Beyond the major cryptocurrencies, several altcoins including KAIA, FARTCOIN, JTO, SPX, and VIRTUAL have recorded gains exceeding 10%, highlighting a widespread bullish sentiment across the market. This surge suggests increasing investor appetite for diverse crypto assets amid favorable macroeconomic conditions. Market participants are encouraged to monitor these altcoins closely as they may offer significant upside potential in the current environment.
Conclusion
The recent US CPI data has catalyzed a positive shift in the cryptocurrency market, with Bitcoin, Ethereum, and XRP leading the charge through key resistance levels. Technical indicators across these assets point to sustained bullish momentum, supported by potential Federal Reserve policy easing. While market volatility remains a factor, the overall outlook suggests a favorable environment for crypto investors. Staying informed and vigilant will be essential as the market navigates these developments.
