XRP, Chainlink and Cardano eyed as Altcoin plays on Fed liquidity shift

Analysts highlight xrp, Chainlink and Cardano as potential winners if the Fed ends quantitative tightening and manufacturing PMI moves above 50, echoing 2019 patterns.

As the U.S. Federal Reserve approaches the conclusion 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 stated that historical patterns suggest cryptocurrencies often enter bullish phases when quantitative tightening concludes and the Manufacturing PMI rises above 50, signaling economic expansion. Gambardello noted that the Federal Reserve’s quantitative tightening cycle is scheduled to 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 aligned with current measurements, though at different price points.

Chainlink is currently trading at levels comparable to September 2019 when the previous quantitative tightening cycle ended, according to market data. The cryptocurrency’s on-chain risk score remains below the range observed during the 2019 pivot point.

Cardano’s (ADA) price ratio against Bitcoin is positioned at levels similar to those seen during the 2019 quantitative tightening conclusion, according to analysts. The cryptocurrency’s current risk score remains in a low range.

XRP presents a different regulatory environment compared to previous cycles. The cryptocurrency previously faced limitations due to Securities and Exchange Commission litigation, but those legal obstacles have been resolved. The XRP (XRP) to Bitcoin (BTC) pair is trading at levels comparable to those observed when quantitative tightening ended in 2019, with a current risk score of 39.

Market analysts note that when quantitative tightening cycles conclude, liquidity conditions typically shift, potentially affecting risk asset performance. A Manufacturing PMI reading above 50 indicates economic expansion, according to economic data standards.

The three altcoins demonstrate historical price patterns and technical indicators that some analysts view as significant for long-term positioning, though cryptocurrency markets remain subject to volatility and regulatory developments.