The cryptocurrency market experienced a sudden rally from early Wednesday, with Bitcoin (BTC) leading the way, following positive news on the inflation front. This surge in bullish momentum also impacted other altcoins, including NEAR Protocol (NEAR), which shows signs of a potential breakout.
A recent report indicated that US inflation has slowed for the first time this year, providing hope in the battle against rising prices.
Bitcoin Reacts Positively to Lower Inflation
This news was received with optimism by cryptocurrency investors, increasing the prices of Bitcoin and other alternative coins. The Federal Reserve, which is responsible for controlling inflation, has raised interest rates to slow down the economy and curb inflation. The slowdown in inflation can be attributed to lower gas and food prices, although renting costs remain persistently high, prompting the Fed to monitor this aspect closely.
In April 2024, CPI inflation increased by 0.3%, remaining at 0.3% when food and energy were excluded. This rate is lower than the 0.4% monthly increases seen in February and March but higher than the 0.1% to 0.2% inflation frequently observed in the latter part of 2023.
The global cryptocurrency market capitalization has increased by 4.46% over the last 24 hours, with Bitcoin (BTC) surging by more than 5.50%. Bitcoin’s recent rise to $65,000, a level last seen on May 6, has caused significant volatility in the digital asset market, resulting in over $120 million in liquidations in the past 24 hours.
Meanwhile, among the top 30 altcoins that have shown positive signs of over 5% in the last 24 hours are Solana (SOL), Toncoin (TON), Render (RNDR), and the Pepe (PEPE) meme coin.
NEAR Protocol (NEAR) Poised for Breakout
The broader cryptocurrency market is currently experiencing positive momentum, with NEAR Protocol (NEAR) showing the potential for a breakout. NEAR has surged by over 11% to $7.81, and technical indicators and recent market activity suggest that a significant price increase could be imminent. The price chart for NEAR reveals an ascending triangle pattern, often seen as a bullish continuation signal.
Traders are becoming more optimistic, as evidenced by rising Open Interest in NEAR futures contracts. The Relative Strength Index (RSI) is also comfortably above 60, signifying healthy buying momentum.
If Near Protocol (NEAR) can decisively break above the resistance level at $8, there could be a surge toward $9.9. However, a breakdown below the trend line could lead to a correction down to $6.5.
