Bitcoin price could be gearing up for a decisive move, which could set the stage for XRP, LTC, RNDR and CFX.
Inexperienced traders usually chase prices higher during the end of the bull phase as they fear missing out on the rally. However, institutional investors tend to wait for the froth to settle before entering. Bitcoin’s (BTC) bear market in 2022 ended the hype that was seen in 2021.
Fred Pye, CEO of 3iQ, Canada’s first Bitcoin fund issuer, said in an interview with Cointelegraph that as “the FOMO in Bitcoin is gone” institutional investors and portfolio managers have started to take a look at it as “a serious venue.”
While analysts are bullish for the long term, the short-term picture looks uncertain as the price is stuck inside a range for the past several days. Analysts expect a trending move to start either next week or the week after.
If Bitcoin breaks out to the upside, what are the altcoins that may follow it higher? Let’s analyze the charts of the top five cryptocurrencies that may rally in the short term.
Bitcoin price analysis
Bitcoin has been trading near the support line of the symmetrical triangle but the bulls have failed to push the price above it. This indicates that the bears are active at higher levels.
The downsloping 20-day exponential moving average ($27,481) and the relative strength index below 42, indicate that bears are at an advantage.
If the sellers sink the price below the immediate support at $26,361, the BTC/USDT pair may tumble to the crucial support zone between $25,800 and $25,250. Buyers are expected to protect this zone with all their might because if they fail, the pair could nosedive to $20,000.
Conversely, if bulls kick the price above the 20-day EMA, it may attract further buying. The pair could then rise toward the resistance line of the triangle. If this barrier is overcome, the pair may start its journey to $32,400.
The 4-hour chart shows the formation of a symmetrical triangle pattern, indicating uncertainty among the bulls and the bears. The flattening moving averages also point to a balance between supply and demand.
If the price collapses below the triangle, the short-term trend will turn negative and the pair could drop to $25,800. The pattern target of the triangle is $24,773.
This bearish view will be negated if the price surges above the triangle. The pair could then climb to $28,400 and thereafter to the pattern target of $29,165.
XRP price analysis
XRP (XRP) is trying to start a recovery. Buyers have been sustaining the price above the 20-day EMA ($0.45) since May 16 but they haven’t been able to overcome the obstacle at the 50-day SMA ($0.47).
The 20-day EMA has started to turn up and the RSI is just above the midpoint, indicating that bulls have a slight advantage. That increases the likelihood of a rally above the 50-day SMA. The XRP/USDT pair could then start a rally to $0.54 and eventually to $0.58. This zone is likely to witness aggressive selling by the bears.
The first support to watch on the downside is the 20-day EMA. Sellers will have to yank the price below this level to gain the upper hand. The pair may then descend to $0.43 and later to the crucial support at $0.40.
The 4-hour chart shows that the recovery reversed direction from the downtrend line. This shows that the bears are fiercely guarding the downtrend line. Sellers are trying to maintain the price below the 20-EMA and stretch the pullback to the 50-SMA.
Instead, if the price turns up from the current level and climbs above the downtrend line, it will suggest the start of a short-term up-move. There is a minor resistance at $0.48 but it is likely to be crossed. The pair may then rally to $0.54.
Litecoin price analysis
Litecoin (LTC) has been trading in a tight range between the 50-day SMA ($89) and the overhead resistance of $96 for the past few days. This shows indecision between the bulls and the bears.
The 20-day EMA ($88) has turned up and the RSI is in the positive territory, indicating that the bulls have the edge. This enhances the prospects of a rally above the resistance at $96. If that happens, the LTC/USDT pair could rally to $106. This level may again attract strong selling by the bears.
This positive view will invalidate in the near term if the price turns down and plummets below the moving averages. Such a move will suggest that the pair may remain stuck between $79 and $96 for some more time.
The 4-hour chart shows that the bulls are trying to defend the 20-EMA. This indicates a change in sentiment from selling on rallies to buying on dips. If the price bounces off the current level, the bulls will again try to clear the overhead hurdle at $96.
However, the bears are not going to give up without a fight. They are trying to sink the price below the 20-EMA. If they are successful, the pair may crumble to the 50-SMA. A collapse of this support may open the doors for a fall to $86 and then $82.
Related: Bitcoin, Ethereum bears are back in control — Two derivative metrics suggest
Render Token price analysis
Render Token (RNDR) is in an uptrend. Buyers kicked the price above the overhead resistance of $2.60 on May 21 but the long wick on the candlestick shows selling at higher levels.
The upsloping moving averages and the RSI just below the overbought area indicate that bulls are in command. Buyers will make another attempt to propel the price above the psychological barrier at $3. If they manage to do that, the RNDR/USDT pair may rally to $3.35.
The first support to watch on the downside is the 20-day EMA ($2.10). If this level gives way, it will suggest that the break above $2.60 may have been a bull trap. The pair could then plunge to the 50-day SMA ($1.87).
The bulls are struggling to sustain the price above the overhead resistance at $2.60, pointing toward the possibility of a bull trap. Sellers will try to strengthen their position by pulling the price below the immediate support at the 20-EMA. If they do that, the pair may decline to the 50-SMA.
However, the rising moving averages and the RSI in the overbought zone suggest that lower levels are likely to be purchased. If buyers push and maintain the price above $2.60, the pair could soar to $3.
Conflux price analysis
Conflux (CFX) is trading inside a descending channel pattern. The bulls purchased the dip to the support line on May 12, indicating solid demand at lower levels.
The 20-day EMA ($0.29) has flattened out and the RSI is near the midpoint, suggesting that the selling pressure has reduced.
Buyers tried to clear the overhead hurdle at the 50-day SMA ($0.32) on May 16 but the bears held their ground. A minor positive in favor of the bulls is that they have not allowed the price to dip back below the 20-day EMA. This signals buying on dips.
The bulls are likely to make one more attempt to propel the price above the 50-day SMA. If they succeed, the CFX/USDT pair may reach the downtrend line, which is again likely to act as a formidable resistance.
The 4-hour chart shows that the price is correcting the sharp rally from $0.22 to $0.33. Buyers are trying to defend the 38.2% Fibonacci retracement level of $0.29 which is a positive sign.
If buyers sustain the price above the resistance line, it will suggest that bulls are back in the driver’s seat. The pair may first rise to $0.33 and thereafter to $0.37. Alternatively, a break and close below $0.29 could start a deeper correction toward $0.28 and then 0.27.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
from Cointelegraph.com News Rakesh Upadhyay
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