Crypto whales are moving this week after the Consumer Price Index (CPI) showed that inflation In the United States cooled in February, bolstering expectations for a smaller rate hike at the Federal Reserve’s upcoming monetary policy committee meeting next week. The U.S. Consumer Price Index (CPI) rose 0.4% in February from 0.5% in January. However, even as CPI continues the trend lower for the eighth consecutive month, it is still remarkably high by the Fed’s standards. Richard Usher, head of over-the-counter trading at London crypto firm BCB Group, said:
“With CPI falling in line with expectations today and the recent fall in global yields signalling that interest rate hikes may be pared back, many cryptocurrencies have skyrocketed in price.”
The whales are sending crypto assets to and from exchanges, where they could be sold on the open market. Some of the biggest whales in existence are moving around hundreds of millions of dollars, and the single largest transaction, spotted by the on-chain address tracker Whale Alert, moved 11,125 BTC worth $267.95 million to Binance.
On-chain data shows that the exchange inflow of many cryptocurrencies registered its largest value in six months, which could be a sign that profit-taking may be going on after the price surge. On-chain analytics firm Santiment reported this Tuesday that many coins have entered into exchanges recently, and inflows in the market are currently overwhelming the outflows and net number of coins that are entering exchange wallets.
Polkadot (DOT) has risen more than 5% in the last 24 hours to trade at $6,40 at press time, consequently recovering from losses that happened in the first trading week of March 2023. So far, the price of Polkadot remains in a “buy zone “despite these inflows, but according to analytics firm Santiment, higher inflows could soon impart a bearish effect on the price.”
Technical Analysis Of Polkadot (DOT)
The price of Polkadot (DOT) has advanced from $5.32 to $6.57 in less than four days, and the current price stands at $6.40. The price has also moved above the 10-day moving average, indicating that this cryptocurrency could advance even more in the upcoming days.
The price of this cryptocurrency is also correlated with Bitcoin, and if the price of Bitcoin jumps above $27000, we could probably see Polkadot (DOT) at a higher price level than the current price. The current support level is $6, and if the price breaks this level, we could see DOT at $5.5 or even below.
