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Bitcoin Charts Indicate Bullish Potential, ADA, QNT, RNDR, and RPL Stand to Gain
As Bitcoin’s graph starts to lean towards a bullish trend, a potential Bitcoin price surge might set off upward movements for ADA, QNT, RNDR, and RPL.
US Equities Markets Celebrate Debt Ceiling Deal and Nonfarm Payrolls Data
June 2 saw a positive reaction in the United States equities markets with the announcement of the debt ceiling deal and the release of May's nonfarm payrolls data. The S&P 500 saw a weekly increase of 1.8%, and the tech-centric Nasdaq rose 2%, marking the sixth consecutive week of profits for Nasdaq – a streak not seen since January 2020.
The rally might also be attributed to the speculation that the Federal Reserve may hold off on any drastic measures during its next meeting. CME's FedWatch Tool reveals a 75% chance of a pause, while a minority 25% anticipate a 25 basis points rise at the June 14 meeting.
However, the equities markets' rallies did not echo in Bitcoin and altcoin markets. On the bright side, a handful of major cryptocurrencies have halted their downward trajectory and seem to be on the cusp of recovery.
But can the bulls maintain this momentum and successfully overcome their respective overhead resistance levels? If so, which cryptocurrencies might spearhead this rally?
Analysis of Bitcoin Price Trends
Bitcoin has been hovering close to the 20-day exponential moving average ($27,233) for three consecutive days, which implies that the bulls are taking advantage of the dip near $26,500.
The 20-day EMA has stabilized, and the relative strength index (RSI) lingers just under the midpoint, denoting equilibrium between buying and selling pressures. This equilibrium might shift in favor of the bulls if they manage to push the price beyond the resistance line of the descending channel pattern, which could initiate an upward trend toward $31,000.
However, if the price recoils from the resistance line, it implies that the BTC/USDT pair might continue to oscillate within the channel. Investors should keep an eye on the crucial $25,250 downside level. A breach and close beneath this support could trigger a selling wave and pull the price down towards $20,000.
On the four-hour chart, it's evident that the bears are keeping a tight rein on the immediate resistance at $27,350. Meanwhile, the pair has been making higher lows in the short term, indicating buying interest at lower price levels. This may boost the likelihood of a rally surpassing the overhead resistance. In such a scenario, the pair could ascend to the resistance line of the descending channel.
For the bears to regain dominance, they'll need to promptly drive the price below the nearest support at $26,505. The next possible decline could be to $26,360, followed by $25,800.
Analysis of Cardano Price Trends
Cardano consistently finds support at the uptrend line, although the bulls have yet to propel the price above the 50-day simple moving average ($0.38).
In the coming days, a breakout from this narrow range trading is expected. If the bulls can thrust and maintain the price above the 50-day SMA, it could open the door for a potential rally to $0.42 and subsequently to $0.44.
Conversely, if the price deflects from the 50-day SMA and slips below the uptrend line, it could signal the beginning of a deeper correction. In such a case, the ADA/USDT pair might drop to the solid support at $0.30.
The four-hour chart indicates that the $0.38 mark is acting as a sturdy barrier. However, the ascending moving averages and the RSI in the positive zone suggest that the bulls are in control. If the buyers can push the price above $0.38, the pair could rise to $0.40 and then to $0.42.
If the price sharply declines from its current position and breaks below the 50-SMA, it will signal that bears have regained control in the short term. This could result in the pair plunging to $0.36 and possibly to $0.35 later.
Quant (QNT) Price: Bulls in Control?
Following several days under the downtrend line, Quant embarked on a recovery journey starting May 26. Consistent buying by the bulls propelled the price above the moving averages on May 29, signalling a possible shift in trend.
With the moving averages displaying a bullish crossover and the RSI favoring the bulls, the least resistance appears to be upward. A hurdle awaits at $120, but if overcome, the QNT/USDT pair could ascend to $128 and then to $135.
However, a sharp decline from $120 would allow the bears to attempt pulling the price towards the 20-day EMA ($110). It's crucial to monitor this level as a breach could signal the return of bear dominance.
The four-hour chart reveals a trading range between $114.50 and $120. While the 20-EMA is largely horizontal, a positive RSI indicates persistent bullish momentum. If the $120 barrier is cleared, the pair could potentially initiate the next bullish leg.
In contrast, a price drop below $114.50 might suggest a slight advantage for the bears. In such a case, the pair could drop to $110 and later to $102. The deeper the fall, the longer the anticipated recovery period.
Render Token (RNDR) Price: An Upward Trend in the Making?
While many major cryptocurrencies grapple with recovery amidst a downtrend, Render Token (RNDR) appears to be forging a new upward path.
On May 31, the RNDR/USDT pair dipped to the 20-day EMA ($2.48), but the bulls effectively defended this level. This shows positive sentiment with traders buying on dips to robust support levels. The pair might test the 52-week high of $2.95. If this resistance is breached, the pair might surge to $3.75.
The initial sign of weakness would be a break and close below the 20-day EMA. This move would suggest aggressive profit-taking by short-term bulls, potentially leading to a drop towards the 50-day SMA ($2.20).
With a completed bullish crossover in the moving averages and a positive RSI, it seems the bulls are in control. Buyers will aim to push the price beyond the overhead resistance zone between $2.90 and $2.95. Success could ignite a new uptrend.
However, if the price declines from either the current level or the overhead resistance and breaks below the moving averages, it could signal the return of the bears. A break and close below $2.42 would herald a downward move toward $2.25.
Rocket Pool (RPL) Price: A Change in Sentiment?
Rocket Pool (RPL) has maintained a trajectory within an ascending channel pattern for several days. A short-term positive sign is that bulls have kept the price above the moving averages. This shift in sentiment from selling on rallies to buying on dips is noteworthy.
The RPL/USDT pair has been oscillating within a tight range recently. This behavior suggests that range expansion might be imminent. If the price breaks and closes above $50.50, an upward movement towards the channel's resistance line is likely. The bears are anticipated to fiercely defend this level.
This optimistic view could be invalidated if the price turns downward from its current position and breaks below the moving averages. The pair might then drop to the support line of the channel.
The four-hour chart reveals that the bulls are holding the price above the moving averages, yet they're struggling to clear the overhead resistance at $50.37. This hints at bears continuing to sell during minor rallies.
If the price falls and breaks below the 50-SMA, it might imply a surrender from the bulls. The pair could then drop to the support line near $46.
Conversely, if buyers push and hold the price above $50.50, the bullish momentum may intensify, potentially leading the pair to rally to $53.50.
