Analysts highlight XRP, Chainlink and Cardano as potential winners if the Fed ends quantitative tightening and the manufacturing PMI rises above 50, following 2019 patterns.
Summary
- Dan Gambardello pegs altcoin bull phases to the end of quantitative tightening and the production PMI breaking above 50, ending the current qt cycle in days.
- Chainlink and Cardano are trading near 2019 QT closing levels against bitcoin, with on-chain and risk scores still in relatively low zones.
- XRP’s legal overhang has disappeared since the sec case, and the BTC pair plus 39 risk scores reflect the circumstances surrounding the previous qt conclusion.
As the US Federal Reserve nears the end of its quantitative tightening cycle, cryptocurrency analysts are highlighting potential opportunities in altcoins including XRP, Chainlink and Cardano.
Analyst predicts Altcoin season after Fed pivot
Crypto analyst Dan Gambardello declared that historical patterns suggest that cryptocurrencies often enter a bullish phase when quantitative tightening ends and the Manufacturing PMI rises above 50, signaling economic expansion. Gambardello noted that the Federal Reserve’s quantitative tightening cycle will end within three days.
According to Gambardello’s analysis, similar market conditions last occurred in September 2019, when Bitcoin pair levels and risk score zones matched current readings, albeit at different price levels.
According to market data, Chainlink is currently trading at levels similar to September 2019, when the previous quantitative tightening cycle ended. The cryptocurrency’s on-chain risk score remains below the range observed during the 2019 pivot.
The price ratio of Cardano (ADA) to Bitcoin, according to analysts, is at levels similar to those of the 2019 quantitative tightening. The current risk score of the cryptocurrency remains in a low range.
XRP presents a different regulatory environment compared to previous cycles. The cryptocurrency previously faced restrictions due to lawsuits at the Securities and Exchange Commission, but these legal hurdles have been resolved. The XRP (XRP) to Bitcoin (BTC) pair is trading at levels similar to those observed when quantitative tightening ended in 2019, with a current risk score of 39.
Market analysts note that when quantitative tightening cycles end, liquidity conditions tend to change, potentially affecting the performance of risky assets. A manufacturing PMI above 50 indicates economic expansion, according to economic data standards.
The three altcoins demonstrate historical price patterns and technical indicators that some analysts consider important for long-term positioning, although cryptocurrency markets remain subject to volatility and regulatory developments.
