On June 2, the United States equity markets reacted positively to the debt ceiling deal and May nonfarm payrolls data, with the S&P 500 and Nasdaq both experiencing strong rallies. The S&P 500 increased by 1.8% during the week, while the Nasdaq rose by 2%. This marks the sixth consecutive week of gains for the Nasdaq, the first time since January 2020.
In addition to the aforementioned, the possibility that the Federal Reserve will remain in a period of pause during their upcoming meeting could have been a catalyst for the rally. According to CME’s FedWatch Tool, there is a 75% chance of a pause, while the remaining 25% anticipate a 25 basis points increase on June 14th.
Rallies in the equities markets did not cause a similar surge in Bitcoin (BTC) or the altcoins. Nevertheless, a minor advantage is that a few major cryptocurrencies have ceased declining and are attempting to begin a recovery.
Can bulls keep up the energy and surpass the relevant overhead resistance levels? If they do, what are the top five cryptocurrencies that could be at the front of the surge?
Bitcoin price analysis
For the last three days, Bitcoin has been trading close to the 20-day exponential moving average ($27,233), indicating that the bulls are taking advantage of the dip near $26,500.
The 20-day EMA has leveled off and the RSI is slightly lower than the midpoint, signifying an equilibrium between buyers and sellers. If the price is pushed past the descending channel’s resistance point, the balance could shift in favor of the buyers, potentially leading to a rise to $31,000.
Should the cost descend from the resistance line, it implies that the BTC/USDT pair could stay within the channel for a while longer. The crucial level to observe on the downside is $25,250. If this support is breached and closed below, it could intensify the selling pressure and pull the price down to $20,000.
The four-hour chart reveals that the bears are currently protecting the close resistance at $27,350. In the short-term, the pair has been forming higher lows, suggesting that demand is present at lower levels, which increases the possibility of a surge above the overhead resistance. If that occurs, the pair could surge to the resistance line of the descending channel.
If bears are aiming to gain control, they must swiftly drive the price beneath the closest support at $26,505. The next potential point on the downside could be $26,360 and then $25,800.
Cardano price analysis
Cardano (ADA) has seen multiple occasions where it has been propped up by the uptrend line, yet the bulls have not been able to push the price beyond the 50-day simple moving average ($0.38).
It is probable that a breakout from the current range trading will occur in the coming days. If the bulls are able to push the price above the 50-day simple moving average and maintain it there, it will open the possibility of a surge to $0.42, followed by $0.44.
If the price falls from the 50-day Simple Moving Average and goes below the uptrend line, it implies the beginning of a more significant correction. The ADA/USDT pair could then drop to the strong support of $0.30.
The four-hour chart indicates that the $0.38 level is proving to be a formidable resistance.
If the price sees a steep decline from its current level and falls below the 50-SMA, it will indicate that the bears have taken command in the short-term. This could result in the pair plummeting to $0.36 and then further to $0.35.
Quant price analysis
Quant (QNT) had been trading beneath the downtrend line for a few days, but on May 26, the price began to rebound. On May 29, the bulls kept up their buying pressure, pushing the price above the moving averages and suggesting that the trend might be reversing.
The moving averages have formed a bullish crossover and the RSI is in the positive zone, suggesting that the most likely direction is upward. A resistance level exists at $120, however, if the bulls can break it, the QNT/USDT pair could ascend to $128 and then to $135.
Contrary to this presumption, if the price drops drastically from $120, the bears will attempt to drag the price down to the 20-day EMA ($110). This is an essential level to watch since a breach underneath it will demonstrate that the bears have regained control.
The 4-hour chart indicates that the price is confined within a range between $114.50 and $120. The 20-EMA is relatively stable, however the RSI is in the positive range, suggesting that the momentum remains bullish. Should bulls manage to overcome the resistance at $120, it is anticipated that the pair will commence the next stage of its upward journey.
If the price drops below $114.50, it could signify that bears have the upper hand. This could cause the pair to decline to $110 and then potentially to $102. The more severe the decrease, the longer it will take for the uptrend to resume.
Is the low volatility of cryptocurrency markets a hindrance or a chance?
Render Token price analysis
Whilst many major cryptocurrencies are attempting to rebound from a bear market, Render Token (RNDR) has initiated a bullish trend.
The RNDR/USDT pair dropped to the 20-day EMA ($2.48) on May 31, yet the bulls were successful in safeguarding the level. This displays a bullish outlook where traders are taking advantage of the dips to robust support levels. The pair could try to reach the 52-week peak of $2.95. In the event that this resistance is surpassed, the pair could possibly surge to $3.75.
If the price breaks and closes below the 20-day EMA, it will be a sign of weakness. This could mean that short-term bulls are taking profits, which could lead to a potential decline to the 50-day SMA ($2.20).
The bullish crossover of the moving averages and the positive RSI indicate that the bulls are in control. Buyers will attempt to lift the price beyond the resistance zone between $2.90 and $2.95. If they are successful, a new uptrend may be initiated.
Conversely, if the price drops from its current level or the overhead resistance and falls below the moving averages, this will indicate that the bears are regaining control. A break and close below $2.42 will signify the beginning of a decline towards $2.25.
Rocket Pool price analysis
For the past several days, Rocket Pool (RPL) has been trading within a channel pattern that is rising. A positive indication in the short-term is that the bulls have been keeping the price above the moving averages, which shows a shift in sentiment from selling during price increases to buying during price drops.
The RPL/USDT pair has been confined to a narrow range in the last few days, indicating that a widening of the range might be imminent. If the price surpasses and ends up above $50.50, it would signify the commencement of a rally to the boundary of the channel. The bears are likely to fiercely guard this level.
If the price decreases from its current level and falls below the moving averages, then this optimistic outlook will soon become invalid. The pair could then drop to the bottom of the channel.
The four-hour chart indicates that the bulls are keeping the price above the moving averages, however they have failed to break through the resistance at $50.37. This implies that the bears are still selling on any minor increases.
If the price drops and falls beneath the 50-SMA, it would signify that the bulls have relinquished control. The pair could then dive to the support line close to $46.
Should buyers drive and maintain the price above $50.50, the bullish momentum may increase and the pair could surge to $53.50.
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