ADA Volatility Analysis for PPI, 13th June 2024

Data Analysis

The data released by Bureau of Labor Statistics for Producer Price Index on 13th June, 2024 has come in at a decrease to 0.0% for May 2024. Compared to the previous release for April 2024 at 0.5%, we can see that prices & inflation is still increasing but slowed month over month.

To see the impact and volatility of ADA's price during the PPI release, we will first observe the difference in volume and price changes on the 4-hours chart, followed by the 15-minutes chart. Change in prices will be be determined by the high and low prices instead of the opening and closing prices.

4-Hours Chart Analysis

In the period prior to the release, the trading volume was 18.708M ADA with prices swinging between 0.4277 and 0.4343, representing a swing of 1.52%. Subsequently, the trading volume increased considerably by 79% to 33.458M ADA. Price action ranged from a low of 0.4191 to a high of 0.4342, a significant difference of 3.48%

15-Minutes Chart Analysis

Analysing on a lower time frame to get a more accurate picture, 384,003 ADA in trading volume was observed prior to the data release. Prices ranged between a low of 0.4292 to a high of 0.4307, a 0.35% change. Immediately following, trading volume increased significantly by 853% to 3.659M ADA. At this time, Cardano hit a low of 0.4289 with a high of 0.4342, a significant change of 1.22%.

About Producer Price Index

The Producer Price Index (PPI) measures the average change over time in the prices domestic producers receive for their output. It is a measure of inflation at the wholesale level that is compiled from thousands of indexes measuring producer prices by industry and product category. The index is published monthly by the U.S. Bureau of Labor Statistics (BLS).