On June 2, the US stock market showed a strong rebound, welcoming the debt ceiling deal and the May non-farm payrolls data. The S&P 500 is up 1.8% over the week, while the tech-heavy Nasdaq is up 2%.It’s been 6 weeks in a row profit It’s the first time for the Nasdaq since January 2020.
In addition to the above, expectations that the Federal Reserve will continue in dormant mode at its next meeting may have triggered the rise. CME fedwatch tool There is a 75% chance that the policy rate will be paused, with the remaining 25% expected to raise rates by 25 basis points at the June 14 meeting.
The stock market rally failed to provoke similar performance for Bitcoin (BTC) and altcoins. A small positive, however, is that several major cryptocurrencies have stopped falling and are beginning to recover.
Can the bulls maintain momentum and overcome their respective overhead resistance levels? If so, which are the top five cryptocurrencies likely to lead the rally?
Bitcoin price analysis
Bitcoin has been trading near its 20-day exponential moving average ($27,233) for the past three days. This suggests that the bulls are buying dips near $26,500.
The 20-day EMA has flattened out and the Relative Strength Index (RSI) is just below the midpoint, indicating that supply and demand are in balance. If buyers push the price above the resistance line of the descending channel pattern, the balance will tilt in their favor. That could start a march north toward $31,000.
If the price falls from the resistance line, it suggests that the BTC/USDT pair may spend some more time inside the channel. The key level to watch for on the downside is $25,250. A break below this support and a close may intensify selling and push the price towards $20,000.
The 4-hour chart shows that the bears are defending near-term resistance at $27,350. On the downside, the pair is forming higher lows in the short term, indicating demand at lower levels. This increases the chances of a rally above overhead resistance. When this happens, the pair can rise to the resistance line of the descending channel.
If the bears want to gain the upper hand, the price will need to fall sharply below the nearest support of $26,505. The next lower stops can be $26,360 and then $25,800.
Cardano price analysis
Cardano (ADA) has repeatedly found support at the uptrend line, but the bulls have failed to break the price above the 50-day simple moving average ($0.38).
A breakout from this narrow range is likely within a few days. If the bulls push and sustain the price above the 50-day SMA, it will pave the way for a rally to $0.42 and possibly $0.44.
Alternatively, if the price breaks out of the 50-day SMA and breaks below the uptrend line, it suggests a deeper correction is about to begin. After that, the ADA/USDT pair can plunge to the strong support at $0.30.
The 4-hour chart shows that the $0.38 level is acting as a strong obstacle. However, the rising moving averages and the RSI in the positive zone show that the bulls have the upper hand. If buyers push the price above $0.38, the pair can move to $0.40 and then to $0.42.
A sharp drop from the current levels and a break below the 50-SMA would suggest the bears have taken the lead in the short term. The pair can then drop to $0.36 and then to $0.35.
Quant price analysis
Quant (QNT) reversed and started a recovery on May 26 after staying below the downtrend line for several days. The bulls continued to buy, pushing the price above the moving averages on May 29, signaling a possible change in trend.
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating the path of least resistance to the upside. There is a wall at $120, but if the bulls overcome it, the QNT/USDT pair can rally to $128 and then to $135.
Contrary to this assumption, if the price falls sharply from $120, the bears will try to drag the price back to the 20-day EMA ($110). This level remains an important level to watch as a bear market will regain control once it falls below it.
The 4-hour chart shows that the price is stuck within the $114.50-$120 trading range. The 20-EMA is flat, but the RSI is in positive territory, indicating that the momentum remains bullish. The next uptrend is likely to start once the bulls clear the $120 hurdle.
Conversely, if the price falls and dips below $114.50, it will suggest a slight advantage for the bears. After that, the pair can drop to $110 and then to $102. The deeper the drop, the longer the recovery will take to resume.
Related: Low Volatility in Crypto Markets: Curse or Opportunity?
Render Token Price Analysis
While most major cryptocurrencies are struggling to start a recovery in a downtrend, Render Token (RNDR) has started a new uptrend.
The RNDR/USDT pair dropped to the 20-day EMA ($2.48) on May 31, but the bulls have successfully defended that level. This shows positive sentiment that traders are buying a dip to the strong support level. A retest of the 52-week high of $2.95 is possible. If this resistance can be overcome, the pair can surge to $3.75.
The first sign of weakness will be a breakout and a close below the 20-day EMA. Such a move would indicate aggressive profit taking by the short-term bulls. This could open the door for a fall to the 50-day SMA ($2.20).
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that the bulls have the upper hand. Buyers will try to push the price above the overhead resistance zone between $2.90 and $2.95. If they succeed, the pair could start a new uptrend.
Conversely, if the price turns down from current levels or overhead resistance and breaks below the moving averages, it suggests the bears are on the verge of a comeback. A close below $2.42 indicates the start of a downtrend towards $2.25.
Rocket Pool Price Analysis
Rocket Pool (RPL) has been trading inside an ascending channel pattern for the last few days. The silver lining in the short term is that the bulls are holding the price above the moving averages. This shows a change in sentiment from selling on the upside to buying on the downside.
The RPL/USDT pair has been trading within a tight range for the past few days. This suggests that range expansion may be on the horizon. If the price breaks and closes above $50.50, it will indicate that the channel has started to move up towards the resistance line. We expect the bears to defend this level with all their might.
This positive view will be invalidated in the short term if the price turns down from the current levels and breaks below the moving averages. The pair can then plummet to the channel’s support line.
The 4-hour chart shows that the bulls are holding the price above the moving averages but failing to break out of the $50.37 overhead hurdle. This suggests that the bears are continuing their selling with a small rally.
If the price falls and breaks below the 50-SMA, it indicates that the bulls have given up. After that, the pair can plunge to the support near $46.
Conversely, if buyers push the price above $50.50 and sustain it, the bullish momentum can accelerate and push the price to $53.50.
This article does not contain investment advice or recommendations. Any investment or trading move involves risk and readers should conduct their own research before making any decision.
This article is for general informational purposes and is not intended, nor should it be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views or opinions of Cointelegraph.
