3 Cryptos to Watch Out for After CPI Data Rally

Vinod Dsouza
Top 3 Cryptos
Source: Unsplash

Inflation in the U.S. is cooling down as Thursday’s CPI report shows a drop to 6.5% in December from 7.1% in November 2022. The Feds’ hawkish interest rate hikes seem to be working but remain a long way to reach the normal rate of 2%.

According to reports, the Federal Reserve could hike interest rates yet again in 2023 to tame the inflation numbers. The crypto markets reacted positively to the CPI data as leading tokens are on the greener side of the spectrum. In this article, we will highlight the top 3 cryptos to watch out for after the latest CPI data.

Also Read: Bitcoin Sees its Longest Rally Since 2020 as Inflation Numbers Decrease

1. Bitcoin (BTC)

Bitcoin BTC
Source: Twitter

Bitcoin jumped from $17,912 to $18,989 in less than 24 hours after the CPI data was released. BTC is looking to breach $19,000 and could climb above $20,000 if the markets continue to rally during the weekend. Taking an entry position at the $18,500 level and exiting when it reaches $19,500 could prove beneficial to day traders.

The king crypto is currently volatile giving short-term traders ample room to decide when to jump ship and book profits. The markets might not remain in the green for long and the current volatility is the best way to make hay when the sun is shining.

Also Read: Bitcoin Whales Accumulate 20,000 BTC Worth $345 Million in 5 Days

2. Cardano (ADA)

cardano ada
Source: Pixabay

ADA is up nearly 35% this year and the CPI data rally could make it move further ahead. The Cardano network is also brimming with new projects on the blockchain and is currently in expansion mode.

The network is experiencing rapid growth in smart contracts reaching a high of 4,803 projects. In December 2022 alone, 780 new smart contracts were added to the Cardano network expanding its use cases.

In addition, two new stablecoins will be launched on the Cardano network during Q1 of 2023. The first is the centralized stablecoin USDA which will be backed and pegged to the US Dollar 1:1. The second is stablecoin Djed, which is an asset created with Coti.

Also Read: Cardano: Can These Bullish Factors Take ADA to $1 in 2023?

3. Ripple (XRP)

ripple xrp
Source: TheSun.co.uk / Alamy

Ripple’s native token XRP is looking to break through its resistance levels of $0.37 during the CPI data-induced rally. XRP has remained in the green this week and if the markets maintain the momentum, it could head to $0.39. If $0.39 is reached, XRP’s next leg could be $0.40 before retracing in the charts.

XRP investment products saw nearly $3 million in institutional inflows during the first week of 2023. The inflow of funds into XRP comes at a time when leading cryptos experienced outflows during the start of the week. According to Santiment, XRP boasts about 136,190 daily active user addresses with an increase of social dominance at 1.15%.

In conclusion, Bitcoin, ADA, and XRP, are the top 3 cryptos to watch out for this week.

Also Read: XRP to Reach $80 in the Next Bull Run? Here’s What Analyst Predicts