The crypto market is gaining today, May 7, ahead of the FOMC meeting in which Fed Chair Jerome Powell is expected to announce an interest rate decision. The market has already priced in zero rate cuts, and the focus is on Powell’s speech and whether he will signal cuts in June. If the Fed Chair makes a dovish speech, USA altcoins will be a good choice for crypto investors to buy, as they are poised to make notable gains.
Altcoins on Edge Ahead of Fed’s Powell Speech
Investors are in consensus that the Fed will leave rates unchanged between 4.25% to 4.50% at today’s meeting. However, attention is shifting to what Powell will say in his speech, with analyst Daan Crypto stating,
“The Fed is expected to keep rates the same. The market will be eager to watch for any dovish or hawkish changes in their tone, which has been pretty mixed recently.”
Data from CME FedWatch Tool further shows that 30% of investors expect the Fed to trim rates in June, and this figure will likely change based on what Powell says today. If the speech builds optimism, crypto prices, especially USA altcoins, are poised to rally as investors rush to buy.
CME FedWatch Tool
Moreover, President Trump will likely react to Powell’s speech today and the Fed’s failure to lower rates. This reaction may also spike the market’s volatility, as was the case last month when crypto prices dropped after Trump openly criticized Powell.
If Powell’s speech is hawkish, traders should anticipate a price crash for Bitcoin and altcoins, as this will mean a stronger dollar that will affect demand for risk assets. In a note to investors, the Commonwealth Bank of Australia acknowledged this, saying,
“Another possible source of support for the dollar is today’s (Fed) meeting… if Chair Powell strikes a hawkish tone to assert his independence from political influence.”
As speculation about the impact of this event on crypto prices grows, investors may consider to buy USA altcoins as these will likely perform well if Powell is dovish and if his speech also supports recovery for the greenback.
USA Altcoins to Buy Today For Notable Gains
Some of the best USA altcoins to buy today for notable gains include Ripple (XRP), Solana (SOL), and Chainlink (LINK). These crypto tokens have a bullish outlook and strong fundamentals that could aid a notable price recovery based on the direction that the Fed takes after the FOMC meeting.
XRP Price Targets $2.94
If the Fed’s speech is bullish for crypto tokens, XRP is one of the top USA altcoins to buy for notable gains as it tests resistance at the 50-day SMA level of $2.17, and if it can successfully move above this price to aim for $2.40, it will create the next bullish leg to $2.94. However, this uptrend will occur if the AO bars shift to green and rise to indicate that the momentum is bullish.
XRP/USDT: 1-day Chart
Solana Price Defends Support, Aims for $180
The price of Solana is defending a key support level at $139, as the volume histogram bars indicate that buyers have been dominant in the last three days. Meanwhile, the RSI above 50 confirms a bullish Solana price prediction as the Bollinger bands tighten to suggest a looming breakout. If the breakout occurs, traders should anticipate a move past $180, making SOL among the best made-in-USA altcoins to watch.
SOL/USDT: 4-Hour Chart
Chainlink Price Eyes Gains As Long Positions Surge
The Chainlink price forecast is also bullish after the long/short ratio on the Binance exchange showed that 65% of traders have opened long positions on the token. The build-up in long positions suggests that most futures traders are bullish on this USA altcoin and anticipate notable gains. This outlook could see more investors flock to buy LINK, and this will be even more possible with a dovish speech by the Fed Chair.
LINK Long/Short Ratio
Summary of Top USA Altcoins to Buy
The crypto market will likely extend gains if the Fed Chair signals interest rate cuts in June while giving his speech today. If this happens, some of the top USA altcoins to buy for notable gains include XRP, SOL, and LINK, which eye notable gains as the technical outlook and futures data show a bullish outlook.
The post 3 USA Altcoins to Buy if Fed Signals Rate Cuts in June appeared first on CoinGape.
