ADA Volatility Analysis for PPI, 14th March 2024

Data Analysis

The data released by Bureau of Labor Statistics for Producer Price Index on 14th March, 2024 has come in at an increase to 0.5% for February 2024. Compared to the previous release for January 2024 at 0.4%, we can see that prices & inflation is increasing 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 114.805M ADA with prices swinging between 0.7803 and 0.8104, representing a swing of 3.71%. Subsequently, the trading volume decreased by 14% to 98.517M ADA. Price action ranged from a low of 0.7384 to a high of 0.7906, a significant difference of 6.60%

15-Minutes Chart Analysis

Analysing on a lower time frame to get a more accurate picture, 5.659M ADA in trading volume was observed prior to the data release. Prices ranged between a low of 0.7840 to a high of 0.7994, a 1.93% change. Immediately following, trading volume decreased by 34% to 3.74M ADA. At this time, Cardano hit a low of 0.7816 with a high of 0.7885, a change of 0.88%.

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).