Cryptocurrency market remains cautious ahead of April US CPI release: XRP and SOL face resistance at key pressure levels

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Odaily Planet Daily News: Ahead of the release of U.S. April CPI data, the crypto market’s rally has temporarily stalled. Bitcoin has recently continued to trade in a range between $80,000 and $82,000, failing to effectively break out throughout the entire period since last Wednesday. The market believes that although capital flows still point to a possible subsequent breakout, inflation and macro risks are weighing on risk appetite.

The U.S. will release April Consumer Price Index (CPI) tonight at 8:30 p.m. Beijing time. FactSet data shows that the market expects April CPI to rise to 3.7% year-over-year, up from 3.3% in March. If the forecast is realized, it would mark the largest increase since January 2024 and is significantly higher than the average of 2.7% over the past 12 months. Core CPI is expected to rise to 2.7% year-over-year, up from the prior reading of 2.6%.

Analysts are concerned that, against the backdrop of oil prices staying at high levels and Trump saying the U.S.-Iran ceasefire is “extremely fragile,” if inflation data comes in hotter than expected, it could further trigger risk-off sentiment in the market and drag down the performance of risk assets.

Lukman Otunuga, Head of Market Research at FXTM, said the market is now entering a sensitive phase in which geopolitical risk, inflation risk, and central bank expectations are becoming intertwined. High oil prices, uncertainty around Iran, and key U.S. economic data could drive increased volatility in commodities, exchange rates, and global stock markets.

In addition to macro factors, XRP and SOL are also once again moving close to key supply zones. XRP tested $1.50 at one point today, but this level has repeatedly failed to break since February this year. SOL is once again approaching resistance near $97.

Meanwhile, institutional interest in related assets is heating up. The U.S. spot XRP ETF recorded a net inflow of $25.8 million on Monday, reaching a new high since January 5. Bitcoin and Solana ETFs also continued to see net inflows, while Ethereum ETFs recorded a net outflow of $16.9 million. (CoinDesk)

XRP-2.17%
SOL-2.99%
BTC-1.54%
ETH-2.41%
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