Bitcoin price chart flashes a bullish sign that could lead to breakouts in ADA, QNT, RNDR and RPL
US stock markets welcomed the debt ceiling deal and May non-farm payroll data on June 2 with a strong rise. The S&P 500 rose 1.8% for the week while the Nasdaq Technology Index rose 2%. This was the sixth week in a row gains on Nasdaq, the first such event since January 2020.
In addition to the above, the expectation that the Fed will remain in pause mode during the next meeting could act as a catalyst for the upside. FedWatch CME’s watch a tool It shows a 75% probability of a pause, with the remaining 25% expecting a 25bps rally at the June 14th meeting.
Rallies in stock markets failed to trigger a similar performance in Bitcoin (BTC) and altcoins. However, the minor positive is that many major cryptocurrencies have stopped falling and are trying to start a recovery.
Can the bulls sustain the momentum and overcome the respective upper resistance levels? If they do, what are the top five cryptocurrencies that might lead the rally?
Bitcoin price analysis
Bitcoin has been trading near the 20-day exponential moving average ($27,233) over the past three days. This suggests that the bulls are buying the dip near $26,500.
The 20-day moving average has flattened and the relative strength index (RSI) is just below its midpoint, indicating a balance between supply and demand. This balance will tilt in favor of the buyers if they push the price above the resistance line of the descending channel pattern. That could start a march north towards $31,000.
If the price breaks down from the resistance line, it would indicate that the BTC/USDT pair may spend some time inside the channel. The critical level to watch on the downside is $25,250. A break and close below this support could intensify selling and pull the price towards $20,000.
The 4-hour chart shows that the bears are guarding the immediate resistance at $27,350. On the downside, the pair has been forming higher lows in the near term, indicating demand at lower levels. This enhances the odds of a rally above the general resistance. If this happens, the pair may rise to the resistance line of the descending channel.
If the bears want to get the upper hand, they will have to quickly plunge the price below the nearest support at $26,505. The next stop on the downside could be $26,360, then $25,800.
Cardano price analysis
Cardano (ADA) has repeatedly found support at the uptrend line but the bulls failed to push the price above the 50-day simple moving average ($0.38).
A breakout from this narrow range trading is likely within the next few days. If the bulls push and hold the price above the 50-day SMA, it will pave the way for a potential rally to $0.42 and then to $0.44.
Alternatively, if the price breaks below the 50-day SMA and drops below the ascending trend line, it would indicate the start of a deeper correction. The ADA/USDT pair could sink at the strong support level at $0.30.
The 4-hour chart shows that the $0.38 level is acting as a strong hurdle. However, the bullish moving averages and the RSI in the positive territory suggest that the bulls have the upper hand. If buyers push the price above $0.38, the pair may rise to $0.40 and later to $0.42.
If the price drops sharply from the current level and breaks below the 50-SMA, this would indicate that the bears have taken control in the near term. The pair may then collapse to $0.36 and later to $0.35.
Quantitative price analysis
After staying below the downtrend line for several days, Quantum (QNT) turned around and started to recover on May 26. The bulls continued to buy and pushed the price above the moving averages on May 29, indicating a possible change in direction.
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that the path of least resistance is to the upside. There is a barrier at $120 but if the bulls overcome it, QNT/USDT could rise to $128 and later to $135.
Contrary to this assumption, if the price drops sharply from $120, the bears will attempt to drag the price back to the 20-day moving average ($110). This remains the key level to watch as a break below would indicate the bears are back in control.
The 4 hours chart shows that the price is stuck within a trading range between $114.50 and $120. The 20-EMA is flat but the RSI is in positive territory, indicating that the momentum is still bullish. If the bulls cross the barrier at $120, the pair is likely to start the next stage of the upward movement.
Conversely, if the price declines and drops below $114.50, it would indicate that the bears have a slight advantage. The pair may then drop to $110 and later to $102. The deeper the fall, the more time it takes to resume recovery.
Related: Low Volatility for Cryptocurrency Markets: Curse or Opportunity?
Provide symbol price analysis
While most cryptocurrencies are struggling to start a recovery in a downtrend, Render Token (RNDR) has started a fresh bullish move.
RNDR/USDT dropped to the 20-day moving average ($2.48) on May 31, but the bulls successfully defended the level. This shows a positive sentiment as traders buy dips into strong support levels. The pair could retest the 52-week high of $2.95. If this resistance is overcome, the pair could rise to $3.75.
The first signs of weakness would be a breakout and a close below the 20-day EMA. Such a move would indicate strong profit-taking by the bulls in the short term. That could open the door for a potential drop to the 50-day SMA ($2.20).
The moving averages have completed a bullish cross and the RSI is in positive territory, indicating that the bulls have the upper hand. Buyers will try to push the price above the upper resistance area between $2.90 and $2.95. If they succeed, the pair may start a new bullish trend.
Conversely, if the price breaks below the current level or the upper resistance and breaks below the moving averages, it will signal the return of the bears. A break and close below $2.42 would indicate the start of a bearish move towards $2.25.
Rocket Pool price analysis
Rocket Pool (RPL) has been trading within a bullish channel pattern for the past several days. A positive sign in the short term is that the bulls have kept the price above the moving averages. This indicates a change in sentiment from selling on rallies to buying on dips.
The RPL/USDT pair has been trading within a narrow range for the past few days. This indicates that range expansion could be just around the corner. If the price breaks and closes above $50.50, it would indicate the beginning of an upward move to the channel resistance line. The bears are expected to defend this level with all their might.
This positive outlook will be invalidated in the near term if the price drops below the current level and breaks below the moving averages. The pair may then drop to the channel support line.
The 4 hours chart shows that the bulls are holding the price above the moving averages, but failed to clear the upper barrier at $50.37. This indicates that the bears continue to sell on small rallies.
If the price declines and breaks below the 50-SMA, it would indicate that the bulls have given up. After that, the pair may drop to the support line near $46.
On the contrary, if the buyers push the price and keep it above $50.50, the bullish momentum could pick up and the pair could rise to $53.50.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
This article is for general information purposes and is not intended and should not be considered legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
