Cryptocurrency Market Recovers Mid-Week Amid US Tariff Uncertainty
The cryptocurrency market is showing signs of recovery mid-week, navigating through uncertainty surrounding tariffs in the United States. However, the market is predominantly in the red on Friday, experiencing sustained losses over the past 24 hours following a U.S. appeals court’s suspension of a decision that had blocked President Donald Trump’s tariffs.
Major Artificial Intelligence (AI) tokens, including Bittensor (TAO), Near Protocol (NEAR), and Internet Computer (ICP), are exhibiting weakness alongside prominent assets like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).
Market Overview: Volatility Surges Amid Tariff Uncertainty
A federal appeals court temporarily reinstated President Donald Trump’s tariffs on Wednesday, responding to a request from the Department of Justice. This decision effectively reversed a previous ruling by the Court of International Trade, which had argued that the U.S. Constitution grants Congress the exclusive power to regulate trade with other nations.
The tariffs will remain in effect, at least for now, adding another layer of uncertainty to the market. Attention may also shift to reciprocal tariffs announced in April but delayed by 90 days to allow for negotiations. As the negotiation window narrows, investor anxiety could increase.
The Federal Reserve (Fed) has previously cautioned that tariffs could have a lasting impact on the economy, particularly on inflation, despite President Trump’s calls for urgent interest rate cuts.
The upcoming release of the Personal Consumption Expenditures (PCE) Price Index data on Friday could trigger significant volatility as the weekend approaches. This inflation data provides insights into the Fed’s overall policy direction, especially concerning interest rates.
Technical Outlook: Bittensor, NEAR, ICP – What’s Next?
The convergence of AI technology with blockchain continues to garner significant attention, with tokens like Bittensor, Near Protocol, and Internet Computer standing out. These three tokens collectively represent nearly 33% of the AI sector’s market capitalization in cryptocurrencies, currently valued at $29 billion.
Bittensor, the largest AI token, boasts a market capitalization of approximately $3.6 billion. The native token, TAO, powers the open-source protocol, which leverages blockchain technology to create a decentralized machine learning network.
TAO is currently trading around $408, down nearly 2% on the day. The upward trend within the ascending channel on the daily chart is under considerable pressure. A break below the immediate support at $400 could lead to further declines.
Notably, TAO remains above key moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which are likely to provide support and absorb selling pressure. Key areas of interest on the upside include the supply zone around $467, tested as resistance on multiple occasions, and the $500 level.
NEAR, the token powering Near Protocol’s high-performance blockchain for AI, decentralized applications, and intelligent agents, has lost nearly 22% of its value following a recent rally to $3.38.
NEAR is trading below the 200-day EMA at $3.49, the 100-day EMA at $2.93, and the 50-day EMA at $2.72. A pattern of higher lows, indicated by the ascending trendline, is at risk of breaking, potentially accelerating losses. Traders may focus on the $2.00 area, approximately 23% below the current market rate, and the April low around $1.81.
Internet Computer’s price is defending support at $5.00, following a sharp decline from the recent lower high of $5.56. The path of least resistance appears to be downward, supported by a sell signal from the Moving Average Convergence Divergence (MACD) indicator.
This signal occurred when the blue MACD line crossed below the red signal line, encouraging traders to sell ICP and contributing to selling pressure. Below the $5.00 support, traders should monitor the areas around $4.68 and $4.44, previously tested as resistance and support in early May.
Stay ahead of the curve in the fast-paced crypto world – explore the latest updates and trends at Cryptonewsfeeds.com.
