The S&P 500 Index experienced a significant surge last week, rising by 5.85%, marking its strongest performance since November 2022. This surge was largely driven by the expectation that the Federal Reserve will refrain from further interest rate increases. In contrast, Bitcoin (BTC) saw a more modest increase of approximately 2%. However, there is a positive sign for cryptocurrency investors as a risk-on sentiment is likely to benefit the crypto space.
Bitcoin’s rise has attracted investments in several altcoins that have been struggling for some time. If Bitcoin can maintain its stability, there is a possibility that the recovery may extend to coins that have not yet participated in the upward movement.
While Bitcoin remains in a price range, select altcoins are showing signs of upward movement. Let’s take a look at the charts of the top 5 cryptocurrencies that could potentially continue their rally in the coming days.
Starting with Bitcoin, the price has been trading near the $35,000 resistance level and has formed an ascending channel pattern. This type of pattern is generally considered a negative sign after a sharp rally. If the price breaks below the channel, it may prompt aggressive traders to book profits, potentially pulling the price down to the 20-day exponential moving average. However, a strong rebound from this level would indicate that the bulls are still in control and may attempt to push the price above $36,000 to resume the uptrend. Conversely, if the price breaks below the 20-day EMA, the bears could gain an advantage and push the price towards the strong support zone between $32,400 and $31,000.
Moving on to Cosmos (ATOM), the coin experienced a breakout above the $7.60 resistance level, completing a double bottom pattern. The bulls successfully defended the breakout level, indicating a resumption of the uptrend. The next target for the ATOM/USDT pair is $8.91, with a potential run-up to $10 if crossed. On the downside, the key support level to watch is $7.60, as a break below this level would suggest aggressive selling at higher levels and potentially push the price down to the 50-day SMA.
Next, Uniswap (UNI) reached the overhead resistance of $5 but was unable to break through. However, the bulls have maintained their position and the moving averages have completed a bullish crossover. If the price rises above $5, the UNI/USDT pair could potentially climb to $6 and then $6.40. On the downside, the $4.36 level remains a key support level for the bulls to defend if they want to maintain their advantage.
Near Protocol (NEAR) has experienced a sharp rise in recent days, indicating a potential comeback by the bulls. The key resistance level to watch is $1.63, and if buyers sustain the price above this level, the NEAR/USDT pair could climb to $2. However, overbought levels on the RSI suggest a possible consolidation or correction in the near term. On the downside, a break below $1.63 could lead to a test of the $1.43 support level.
Lastly, Axie Infinity (AXS) has been in a strong recovery phase, but the bears have been selling near the $6 level. Buyers have been defending dips below $5.40, indicating their intention to resume the uptrend. If they succeed in pushing the price above $6, the AXS/USDT pair could potentially rally to $6.55 and $7. On the other hand, a break below the 20-day EMA could result in a deeper correction to $4.65.
It’s important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and assess the risks involved before making any investment decisions.
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