Over the weekend, the leading cryptocurrency will enter at $103,500, coinciding with Moody’s downgrading the U.S. credit rating.
While the recent upsurge was largely underpinned by the China agreement, concerns over tariffs persist. The implications of the latest decision by the credit rating agency offer significant insights.
US Credit Rating Downgraded
Moody’s has downgraded the U.S. credit rating from AAA to AA1. This move signals economic risks and points to noteworthy details in the rating agency’s decision document. The United States’ long-term local and foreign currency country ceilings remain at AAA, suggesting that the current financial proposals are not anticipated to significantly reduce mandatory spending.
The nation’s long-term growth isn’t expected to be substantially affected by tariffs. While acknowledging the U.S.’s major economic and financial strengths, these factors no longer fully offset the decline in fiscal metrics. The federal debt burden is projected to rise from 98% of GDP in 2024 to approximately 134% by 2035.
Following the announcement, the DXY index fell to 101, and the S&P 500 dropped to 5,939. However, the cryptocurrency market did not witness any significant volatility.
DOGE and ADA Coin Predictions
Elon Musk’s last DOGE-related update was about 140 days ago. In the previous year, he made two posts on August 5 and December 23, separated by an equal 20-week interval. If a pattern is at play, Musk could make another appearance soon. Setting speculation aside, maintaining the $0.2 support level is promising for DOGE.
Depending on BTC’s price performance, attempts to revisit $0.25 could be anticipated. The main target remains reclaiming $0.293 for a potential peak journey.
For ADA Coin, the crucial long-standing area has been $0.83, where surpassing it might push the target over $1. However, there’s a risk of decline to $0.72. Factoring in the weekend’s lower trading volumes, without positive news from the US, retracement wouldn’t be unexpected.
If ETH crosses the $2,700 mark, it could initiate a phase breaking BTC’s market dominance. Until this occurs, resistance tests in altcoins may remain capped with upper wicks.