ADA Volatility Analysis for PPI, 11th October 2023

Data Analysis

The data released by Bureau of Labor Statistics for Producer Price Index on 11th October, 2023 has come in at a decrease to 0.3% for September 2023. Compared to the previous release for August 2023 at 0.7%, 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 29.387M ADA with prices swinging between 0.2451 and 0.2487, representing a swing of 1.45%. Subsequently, the trading volume decreased by 20% to 23.48M ADA. Price action ranged from a low of 0.2452 to a high of 0.2489, a difference of 1.49%

15-Minutes Chart Analysis

Analysing on a lower time frame to get a more accurate picture, 2.246M ADA in trading volume was observed prior to the data release. Prices ranged between a low of 0.2479 to a high of 0.2487, a 0.32% change. Immediately following, trading volume increased by 29% to 2.894M ADA. At this time, Cardano hit a low of 0.2470 with a high of 0.2485, a significant change of 0.60%.

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).