Ravencoin (RVN) drops 36% as Fed announces 75bps rate hike

Ravencoin (RVN) fell 36% as the U.S. dollar strengthened on higher U.S. interest rates. Ravencoin has been priced strongly bearish in recent days due to the sell-off in the cryptocurrency market. RVN fell to $0.040, its lowest level since September 9 this year.

Fed announces 75 basis point rate hike

One of the reasons behind the sell-off in the cryptocurrency market may have to do with the Fed rate hike news. The Fed voted unanimously to raise the target range for the federal funds rate to 75 basis points (bp) and sharply raised expectations for rate hikes. The new forecast for federal funds at the end of 2022 is 4.4%, up from the 4.2% inferred for futures contracts prior to this update.

This suggests that the Federal Open Market Committee (FOMC) is likely to raise interest rates by 75 basis points (bps) in November, and possibly by 50 basis points in December or possibly a fifth consecutive rate hike of 75 basis points.

All members of the FOMC agree with this more hawkish narrative, as evidenced by the high clustering in the dot plot.

cryptocurrency market sell-off

The cryptocurrency market has been flashing red, and continued to perform poorly in the early trading of September 21. The market value of the global cryptocurrency market fell 1.22% from the previous day to $927.26 billion. Over the past 24 hours, the total cryptocurrency market volume fell by 11.91% to $68.55 billion. Bitcoin was down 1.19% on the day at $19,009.8.

At the same time, other major cryptocurrencies also fell. Ethereum was valued at $1,339.36, down 0.89%. A strong U.S. dollar and continued crypto market sell-off are two major obstacles to the future growth of Steller’s coin’s valuation.

Russian president sparks risk aversion

The U.S. dollar rose broadly to a fresh two-year high as statements from Russian President Vladimir Putin spooked markets ahead of the likely next big rate hike from the Federal Reserve. Putin issued Russia's first mobilization order since World War II, warning the West that Moscow would respond with all its might with its vast nuclear arsenal if it continued to threaten Moscow with "nuclear blackmail".

The U.S. dollar index, which measures the greenback's value relative to other major currencies, rose more than 0.5 percent to 110.87, its highest level since 2002. A stronger dollar is seen as a major obstacle to further appreciation of Stellercoin.

Ravencoin Price Review and Token Economics

Ravencoin is currently trading at $0.0408 with a 24-hour trading volume of $127 million. Ravencoin is up 1.85% in the past 24 hours. CoinMarketCap now ranks 79th with a real-time market cap of $428 million. There are 10,473,290,000 RVN coins in circulation, with a maximum supply of 21,000,000,000 RVN coins.

Technically, RVN/USD is likely to find immediate support near $0.037, which is supported by an ascending trend line. A break below this level could allow for further selling towards the $0.0299 level.

On the upside, immediate resistance for RVN remains at $0.0436, and a bullish crossover above this level opens up additional buying space until $0.0508 is reached.

Technical indicators such as RSI and MACD show a mixed bias, with RSI indicating a bearish trend and MACD indicating a buying trend. However, the 50-day moving average clearly indicates a sell trend below $0.050.

Source: Akin Talks