$ZEC The Federal Reserve's balance sheet reduction and rate hikes increase the likelihood... - Monero and Zcash values decline amid macroeconomic pressures:

Market reactions to macroeconomic stress have led to a drop in the value of Monero and Zcash:
The broader cryptocurrency market remains under pressure following Federal Reserve Chair Kevin Warsh's remarks at his first press conference after the meeting on Wednesday.
Nevertheless, the entire crypto market is still pressured after Fed Chair Kevin Warsh's speech at his first press conference after the meeting on Wednesday.
The Federal Open Market Committee kept interest rates unchanged, meeting market expectations, but what worried investors was the Fed's hawkish stance, emphasizing price stability and the need to reduce inflation to the long-term target of 2%.
The Federal Open Market Committee maintained interest rates, aligning with market expectations, but investors were concerned about the Fed's hawkish stance, which prioritizes price stability and the goal of bringing inflation down to 2% long-term.
Warsh's statements indicated that the central bank appears comfortable with the current situation but is not yet ready to announce a shift toward rate cuts. In fact, the possibility of raising rates has resurfaced, with market participants currently betting on a 30% chance in the next review.
Warsh's comments suggest the central bank seems satisfied with the current situation but is not yet prepared to signal a move toward lowering rates. In reality, the chance of a rate hike has re-emerged, with market participants currently pricing in a 30% probability in the upcoming review.
VIX | Source: CME Group
VIX | Source: CME Group
Sentiment further deteriorated, as shown by the Fear and Greed Index, which settled at 15 points in the extreme fear zone on Thursday, down from 22 points the previous day. This indicates that investors are cautious about risky assets and are likely to keep their exposure limited in the near term.
Sentiment worsened further, as seen in the Fear and Greed Index, which remained at 15 points on Thursday in the extreme fear zone, down from 22 points the day before. This suggests investors are cautious about risky assets and are likely to maintain limited exposure in the short term.
Cryptocurrency Fear and Greed Index | Source: Alternative
Crypto Fear and Greed Index | Source: Alternative
- Monero extends correction:
Monero continues its adjustment:
The price of XMR remains confined below the middle Bollinger Band around $340 and below all major exponential moving averages, with the 50-day EMA near $359, while the 100- and 200-day EMAs hover slightly above $366.
XMR's price is still restricted below the middle Bollinger Band at around $340, below all key moving averages, with the 50-day EMA near $359, and the 100- and 200-day EMAs slightly above $366.
However, the positive chart signals from the daily MACD and the Money Flow Index (MFI) around 65 indicate improving bullish momentum, but these indicators only suggest corrective rebounds as long as the spot price remains below this high level.
However, the positive signals from the daily MACD and the Money Flow Index (MFI) around 65 suggest bullish momentum is improving, but these indicators only point to corrective rebounds as long as the spot price stays below this high level.
Daily chart of XMR/USDT
Daily chart of XMR/USDT
Meanwhile, initial resistance is seen at the middle Bollinger Band near $340, followed by the 50-day EMA at around $359. Above that, the 100- and 200-day EMAs around $367 form a broader barrier before the upper Bollinger Band near $389. On the downside, the lower Bollinger Band at around $291 acts as a significant support. A break below this level could lead to further decline despite the current positive market momentum.
Meanwhile, initial resistance is at the middle Bollinger Band near $340, followed by the 50-day EMA at about $359. Above that, the 100- and 200-day EMAs around $367 create a wider barrier before the upper Bollinger Band near $389. On the downside, the lower Bollinger Band at approximately $291 provides key support. Breaking this level could lead to further declines despite the current positive market momentum. $XMR