On June 2, US equity markets welcomed the debt ceiling deal and May non-farm payroll data with sharp gains. The S&P 500 rose 1.8% for the week, while the tech-heavy Nasdaq rose 2%. This was the sixth consecutive week of Profits for the Nasdaq, the first such occasion since January 2020.
In addition to the above, the expectation that the Federal Reserve will remain in pause mode during the next meeting may have acted as a catalyst for the rise. The tool CME FedWatch shows a 75% pause probability, while the remaining 25% expect a 25 basis point rise at the June 14 meeting.
Rallies in equity markets failed to trigger similar behavior in Bitcoin (BTC) and altcoins. However, one small silver lining is that several of the major cryptocurrencies have stopped falling and are trying to start a recovery.
Will the bulls be able to maintain momentum and break through the respective resistance levels? If yes, what are the five cryptocurrencies that could lead the rally?
BTC Price Analysis
Bitcoin has been trading near the 20-day exponential moving average ($27,233) for the past three days. This suggests that the bulls are buying the dip near $26,500.
The 20-day EMA has flattened out and the RSI is just below the midpoint, indicating a balance between supply and demand. This equilibrium will tip 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 turns down from the resistance line, it will suggest that the BTC/USDT pair may spend more time inside the channel. The critical level to watch on the downside is $25,250. A break and close below this support can intensify the selling and pull the price towards $20,000.
The 4-hour chart shows that the bears are keeping an eye on the immediate resistance at $27,350. To the downside, the pair has been making higher near-term lows, indicating demand at lower levels. This raises the prospects for a rally above resistance. If this happens, the pair could reach the resistance line of the descending channel.
If the bears want to prevail, they will have to quickly sink the price below the nearest support at $26.505. The next stop to the downside could be 26,360 and then 25,800.
Cardano Price Analysis
Cardano (ADA) has been repeatedly finding support at the uptrend line, but the bulls have failed to push the price above the 50-day SMA ($0.38).
A breakout of this tight range is likely in the coming days. If the bulls push and hold the price above the 50-day SMA, it will clear the way for a potential rally to $0.42 and then $0.44.
On the other hand, if the price turns down from the 50-day SMA and falls below the uptrend line, it will suggest the start of a deeper correction. The ADA/USDT pair could then drop to the strong support of $0.30.
On the 4-hour chart, the $0.38 level behaves like a strong hurdle. However, the bullish moving averages and the RSI in the positive zone indicate that the bulls have the upper hand. If the buyers push the price above $0.38, the pair could rally as high as $0.40 and then as high as $0.42.
If the price turns down sharply from the current level and breaks below the 50-SMA, it will suggest that the bears have taken over in the short term. The pair could crash as low as $0.36 and then as low as $0.35.
Quant Price Analysis
After spending several days below the downtrend line, Quant (QNT) turned around and began a recovery on May 26. The bulls continued their buying and pushed the price above the moving averages on May 29, indicating a potential trend reversal.
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 break through it, the QNT/USDT pair could rally as high as $128 and then as high as $135.
Contrary to this assumption, if the price turns sharply below $120, the bears will try to drag the price to the 20-day EMA ($110). This remains the key level to watch because a break below it will indicate that the bears are back in control.
On the 4-hour chart, the price is range-bound from $114.50 to $120. The 20 EMA is flat, but the RSI is in the positive territory, indicating that momentum remains bullish. If the bulls break out of the $120 barrier, the pair is likely to start the next leg higher.
Conversely, if the price turns lower and breaks below $114.50, it will suggest that the bears have a slight advantage. The pair could then crash as low as $110, and later as low as $102. The deeper the drop, the longer it takes for the rally to resume.
Render Token Price Analysis
While most of the major cryptocurrencies are struggling to start a recovery in a downtrend, Render Token (RNDR) has started a new bullish move.
The RNDR/USDT pair fell as far as the 20-day EMA ($2.48) on May 31, but the bulls successfully defended the level. This shows positive sentiment where some traders are buying dips to strong support levels. The pair could retest the 52-week high of $2.95. If this resistance is broken, the pair could reach towards the $3.75 level.
The first sign of weakness will be a breakout and close below the 20 day EMA. This move will signal aggressive profit taking by short-term bulls. This would open the doors for a possible drop 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 break through the resistance zone located between $2.90 and $2.95. If they succeed, the pair could start a new uptrend.
Conversely, if the price turns down from the current level or above resistance and breaks below the moving averages, it will suggest that the bears are back. A break and close below $2.42 will signal the start of a move down towards $2.25.
Rocket Pool Price Analysis
Rocket Pool (RPL) has been trading inside a rising channel pattern for the past few days. A short-term positive sign is that the bulls have held the price above the moving averages. This signals a shift in sentiment from selling on the rallies to buying on the dips.
The RPL/USDT pair has been trading in a tight range for the past few days. This suggests that a range expansion could be just around the corner. If the pair breaks above $50.50, it is estimated to start a move higher towards the resistance line of the channel. Some of the bears are expected to defend this level with all their might.
This positive view will be invalidated in the short term if the price turns lower from the current level and breaks below the moving averages. In that case, the pair could plummet to the support line of the channel.
The 4-hour chart shows that the bulls are holding the price above the moving averages, but have failed to clear the upper hurdle of $50.37. This suggests that the bears continue to sell on minor rallies.
If the price turns lower and breaks below the 50-day SMA, it will indicate that the bulls have given up. Then, the pair could plummet to the support line near $46.
Conversely, if the buyers push and support the price above $50.50, the bullish momentum could pick up and the pair could reach $53.50.
This article does not contain investment advice or recommendations. All investing and trading involves risk, so readers should do their own research before making a decision.
This article is for general informational purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
