The Canadian Dollar (CAD) took a significant dive on Tuesday, inching closer to the critical 1.4200 level against the US Dollar. Investors are increasingly bearish on the Loonie as the Bank of Canada (BoC) is widely expected to implement a substantial 50 basis point rate cut this week.
A Weakening Canadian Economy
Canada’s economic landscape is currently fraught with challenges. The recent surge in the Canadian Unemployment Rate to multi-year highs has provided the BoC Governor Tiff Macklem with ample justification for further monetary easing. The central bank’s primary goal is to stimulate the housing market, a crucial sector that significantly contributes to the nation’s economic growth.
Interest Rate Differential Widens
The widening interest rate differential between the US and Canada is a key driver behind the CAD’s weakness. As the Fed is poised to maintain a more hawkish monetary policy stance, the appeal of the US Dollar has increased, further pressuring the Loonie.
Market Outlook
The market consensus leans towards a 50 basis point rate cut by the BoC on Wednesday, which could potentially push the main reference rate down to 3.25%. Meanwhile, investors are eagerly awaiting the release of the US Consumer Price Index (CPI) data on the same day. A softer-than-expected inflation reading could reinforce expectations for a third consecutive rate cut by the Federal Reserve on December 18.
The USD/CAD pair has surged to a 56-month high, reflecting the significant structural weakness in the Canadian Dollar. The pair is currently trading within a long-term sideways range, but the recent upward momentum suggests a potential breakout to the upside.
As the BoC prepares to deliver a significant rate cut and the US economy continues to show resilience, the Canadian Dollar is likely to remain under pressure in the near term. Traders should closely monitor the release of key economic indicators and central bank decisions for further direction.
Changpeng “CZ” Zhao, former CEO of Binance, is advising Kyrgyzstan on becoming a crypto hub. He signed an agreement with the Kyrgyz National Investment Agency to build the nation’s Web3 capacities.
A cornerstone of this plan is Kyrgyzstan’s A7A5 stablecoin, pegged to the Russian ruble and focused on emerging markets. CZ claimed that he has been advising several governments “officially and unofficially” regarding crypto.
According to the latest announcements, the country is developing a new A7A5 stablecoin pegged to the Russian ruble. Kyrgyzstan’s crypto turn is also being influenced by Changpeng “CZ” Zhao, the founder of Binance.
“A Memorandum of Understanding has been signed between the National Investment Agency under the President of the Kyrgyz Republic and Changpeng Zhao (CZ). In accordance with the Memorandum, the parties intend to cooperate in the development of the cryptocurrency and blockchain technology ecosystem in the Kyrgyz Republic,” claimed President Sadyr Zhaparov.
Meanwhile, CZ acknowledged his business in Kyrgyzstan, claiming that he introduced President Zhaparov to X, the social media site.
“I officially and unofficially advise a few governments on their crypto regulatory frameworks and blockchain solutions for gov efficiency, expanding blockchain to more than trading. I find this work extremely meaningful,” CZ claimed via social media.
Although CZ’s connection with Kyrgyzstan’s new A7A5 stablecoin is not fully known, it would align with his recent alleged Trump dealings.
Zhaparov’s statement claimed that the Binance founder will provide infrastructural, technological support, technical expertise, and consulting services on crypto and blockchain technologies.
Also, the president went on to state that this agreement with CZ will strengthen Kyrgyzstan’s standing in the growing Web3 environment. The long-term plan is to help create new opportunities for Kyrgyz businesses and society as a whole.
Presumably, this will involve some cooperation with Russia, as A7A5’s press release mentions “a new class of digital assets tied to the Russian economy.” This stablecoin is bucking significant tradition by aligning with the ruble instead of the dollar.
However, this is part of its strategy to focus on emerging markets. This novel experiment could demonstrate new market opportunities and challenge the dominance of USD-pegged stablecoins in the region.
Layer-1 (L1) blockchain network Solana has seen a notable rise in user demand this April. This surge in activity is evident across key metrics, including a marked increase in the network’s daily transactions, fees, and revenue.
This has prompted a spike in the demand for SOL, pushing its price up 16% over the past 30 days. With the network showing no signs of slowing down, SOL could continue its upward trajectory in the short term.
Network Activity Explodes on Solana, Pushing SOL Price Up
The rise in Solana’s user activity this month is evident in its growing daily transaction count. According to data from Artemis, the network has processed over 99 million transactions since the beginning of April, representing a 12% month-over-month increase in daily transactions.
As a result of this increased user engagement, Solana’s network fees and the revenue generated from them have seen a notable uptick. According to Artemis, transaction fees on the network have surged by 35%, while revenue derived from these fees has climbed by 26% over the same period.
The surge in user activity across the Solana network has fueled demand for its native token, SOL. This is because, as more users interact with the L1, the need for SOL to facilitate transactions and pay network fees increases.
This has contributed to a double-digit price rally, with SOL climbing by over 16% in the past month. The price surge reflects growing investor confidence in the network and highlights the positive correlation between user activity and token value.
Hence, if user activity remains high on Solana, SOL could remain bullish into the new month.
Bullish Pressure Builds for SOL, but Drop to $120 Still in Play
On the daily chart, readings from SOL’s Directional Movement Index (DMI) confirm the buying pressure among its spot market participants. At press time, SOL’s positive directional index (+DI, blue line) rests above its negative directional index (-DI, orange line).
The DMI indicator measures the strength of an asset’s price trend. It consists of two lines: the +DI, which represents upward price movement, and the -DI, which means downward price movement.
As with SOL, when the +DI rests above the -DI, the market is bullish, with upward price movement dominating the market sentiment. If this persists, SOL could extend its rally and climb toward $171.88.
However, if Solana’s user activity wanes, impacting the demand for SOL, the coin’s price could shed recent gains, break below support at $142.59, and fall to $120.81.
Ethereum (ETH) is entering a critical week, with technical signals, on-chain data, and a major upgrade all converging. The Pectra Upgrade, set for May 7, aims to improve staking and wallet functionality, but short-term volatility is likely during the rollout.
Meanwhile, ETH’s BBTrend sits at 1.22, showing early bullish momentum, though not yet strong enough to confirm a breakout. At the same time, whale activity remains near 5,463 addresses, and price continues to trade in a tight range between $1,828 and $1,749—setting the stage for a potential breakout or breakdown.
Ethereum Pectra Upgrade Set for May 7: What to Expect
Ethereum’s highly anticipated Pectra Upgrade is set to go live on May 7, introducing 11 new Ethereum Improvement Proposals (EIPs). EIP-7251 stands out for raising the staking cap from 32 ETH to 2048 ETH, aiming to streamline validator operations and boost staking efficiency.
The upgrade also includes wallet improvements focused on user experience, such as easier recovery and gasless transactions, which could drive broader dApp adoption. While this may increase ETH demand long term, exchanges could temporarily halt ETH transfers during deployment, causing short-term volatility.
Though the upgrade promises significant enhancements, it has already faced multiple delays due to extended testing on networks like Hoodi and Sepolia. A smooth rollout may boost confidence and price, but any technical issues could trigger negative market reactions.
ETH Trend Signal at 1.22: Early Uptrend or Just Noise?
Ethereum’s BBTrend indicator is at 1.22, signaling a mild bullish bias. Over the past day, the BBTrend reached a high of 2.23, showing stronger momentum before pulling back slightly.
Although the current reading has cooled, it remains positive, suggesting the uptrend is not yet invalidated. Traders are watching whether BBTrend can rise again to confirm renewed strength or if momentum continues to fade.
The BBTrend (Band-Break Trend) is a volatility-based indicator designed to detect the strength and direction of price trends. Readings above 1.00 typically suggest a bullish trend, while readings below -1.00 indicate a bearish trend.
Values between -1.00 and 1.00 are considered neutral or trendless, signaling either sideways movement or weak conviction in either direction. The farther the BBTrend moves from zero, the stronger the trend, making values like 2.23 notable for trend confirmation.
However, it’s not a strong breakout level, meaning the price could still reverse if selling pressure increases or momentum fades.
A push back above 2.00 would likely confirm sustained bullish momentum, while a drop below 1.00 might indicate a return to consolidation or even a shift to bearish conditions.
Adding to the broader picture, the number of Ethereum whales—addresses holding between 1,000 and 10,000 ETH—currently stands at 5,463.
This number has fluctuated in recent weeks, struggling to break decisively higher. Whale activity is a critical on-chain signal, as these large holders often influence price movements through accumulation or distribution. A steady or rising whale count typically signals confidence and long-term accumulation, which could support ETH’s price in the coming weeks.
Conversely, a continued stall or drop in whale numbers may reflect hesitation among larger investors, potentially limiting upside momentum.
ETH Stuck in a Range as Traders Await Breakout or Breakdown
Ethereum price has traded between $1,828 resistance and $1,749 support since April 21. The range has held for over two weeks, showing market indecision.
The EMA lines remain bullish, with short-term averages still above long-term ones. However, they’re starting to converge, and a death cross could form soon.
