In June, nonfarm payrolls in the United States rose by 209,000, falling short of economists’ expectations of a gain of 240,000 jobs. While this indicates a cooling labor market, there was concern among market observers as average hourly earnings growth remained steady at 0.4% from May and 4.4% from a year ago. Despite the lower-than-expected job growth, the report did not change expectations for a 25 basis point interest rate hike by the Federal Reserve in the next meeting, according to the FedWatch Tool.
As a result, U.S. equities markets remained under pressure, with all three major indices falling for the week. The S&P 500 declined by 1.16% and the Nasdaq fell by 0.92%. In addition, there was an additional minor negative for the crypto markets as a report by JPMorgan managing director Nikolaos Panigirtzoglou suggested that a spot Bitcoin exchange-traded fund (ETF) may not have a significant impact on the crypto space. Panigirtzoglou pointed to lackluster interest in spot Bitcoin ETFs in Canada and Europe as evidence for this view.
Now, let’s turn our attention to the charts of the top five cryptocurrencies that are showing signs of upward movement.
Bitcoin (BTC) has been trading between the 20-day exponential moving average ($29,854) and the overhead resistance at $31,000. This indicates uncertainty and a lack of direction from both bulls and bears. On July 7, the BTC/USDT pair bounced off the 20-day EMA, suggesting that bulls are aggressively defending this level. If buyers are able to overcome the resistance at $31,500, the pair may start a new uptrend, with the potential to reach $40,000.
On the other hand, if bears are successful in pushing the price below the $29,500 support, it could trigger a sell-off and push the pair towards the 50-day simple moving average ($28,101).
Solana (SOL) has been trading in a large range between $15.28 and $27.12 for the past several months. After failing to sustain a price below the range’s support, the price has started to move upwards, crossing the downtrend line. This indicates that bulls are attempting to regain control. If bulls can overcome the minor resistance at $22, the SOL/USDT pair may rally to $24 and eventually to the strong overhead resistance of $27.12. On the downside, support can be found at $18.70, and a break below that level may lead to a drop to the support zone between $16.18 and $15.28.
Similarly, Avalanche (AVAX) has successfully scaled the resistance near the 50-day SMA ($12.99) on July 8. The moving averages are on the verge of completing a bullish crossover, and the RSI is in positive territory, suggesting that bulls have the upper hand. The AVAX/USDT pair may rise to $16 where bears may mount a strong defense. On the downside, $12 is the important support to watch, and a break below that level may lead to a drop to the vital support at $10.52.
Filecoin (FIL) is attempting to form an inverse head and shoulders pattern, which will confirm with a break above the neckline near $5. The moving averages are about to complete a bullish crossover, and the RSI is in positive territory, indicating that bulls have a slight advantage. If the price can reach the neckline, the FIL/USDT pair may start a new uptrend with a target of $7.30. However, if the price breaks and sustains below the moving averages, it could invalidate this bullish view and lead to a drop to $3.
Lastly, EOS (EOS) has been forming a higher high and higher low pattern, indicating a potential trend change. The 20-day EMA ($0.73) has flattened out, and the RSI is near the midpoint, suggesting that selling pressure is easing. To confirm the end of the downtrend, buyers need to push the price above the overhead resistance at $0.79. If successful, the EOS/USDT pair could surge toward $0.93. On the downside, the pair may remain range-bound between $0.60 and $0.79 if the price fails to break above the resistance.
It’s important to note that this article does not provide investment advice or recommendations. Investing in cryptocurrencies carries risks, and individuals should conduct their own research before making any investment decisions.