The S&P 500 Index had a strong performance last week, fueled by expectations that the Federal Reserve will not raise rates. In comparison, Bitcoin had a more muted performance, but there is optimism that a risk-on sentiment will benefit the crypto space. This has led to investments in altcoins that have been performing poorly. Despite Bitcoin trading in a range, select altcoins are showing signs of moving higher. Let’s analyze the charts of the top 5 cryptocurrencies that may extend their rally in the next few days.
Bitcoin continues to trade near the $35,000 resistance and has formed an ascending channel pattern. If the price breaks below the channel, it may tempt traders to book profits and pull the price down to the 20-day moving average. However, if it rebounds off this level, it suggests that bulls are still in control and will try to push the price above $36,000.
Cosmos (ATOM) rose above the $7.60 resistance and completed a double bottom pattern. The breakout level between $7.60 and $8.25 is important support to watch. If bears pull the price below this level, it may indicate aggressive selling at higher levels. On the other hand, if bulls maintain the price above $8.20, the pair could start its next leg up.
Uniswap (UNI) reached resistance at $5 but has not given ground to bears. Moving averages have crossed over bullishly and the RSI is positive, indicating that bulls have an advantage. If buyers push the price above $5, UNI/USDT could rise to $6 and then to $6.40. However, if bears defend $5 strongly, it may pull the price down to the 20-day moving average.
Near Protocol (NEAR) has seen a sharp rise recently with resistance at $1.63. Bulls have not allowed the price to dip below $1.43, indicating their anticipation of a continued rally. If the price stays above $1.63, NEAR/USDT could climb to $2. However, overbought levels on the RSI suggest a possible consolidation or correction in the near term.
Axie Infinity (AXS) has been recovering but bears are selling near $6. Bulls have defended dips below $5.40 and are trying to push the price above $6 to continue the uptrend. If successful, AXS/USDT could rise to $6.55 and then to $7. However, if bears pull the price below the 20-day moving average, a deeper correction is possible.
In conclusion, while Bitcoin remains in a range, select altcoins show potential for further rallies. Investors should keep an eye on key support and resistance levels for each cryptocurrency to gauge market sentiment and make informed decisions.
Hot Take: Altcoins Show Potential for Further Rallies
By
By
By
By