The S&P 500 Index had a positive week, increasing by 0.45% and recording its second consecutive week of gains. However, gold saw a massive run-up of more than 5% this week, with its best one-day performance since December 1 of last year. On the other hand, Bitcoin experienced weakness, ending the week down more than 3%. This, combined with regulatory concerns, has kept crypto investors away from altcoins, resulting in Bitcoin’s market dominance remaining near the 50% mark for the past few days.
Market observers are closely watching Bitcoin, as the longer the bulls sustain the price above $25,000, the higher the chance of a bullish move. This could potentially spur buying in select altcoins, indicating a bull market. Some cryptocurrencies are showing signs of forming a base, and if they break out to the upside, a new upward movement may begin. Let’s analyze the charts of the top 5 cryptocurrencies that could potentially outperform in the near future.
Bitcoin Analysis:
Bitcoin has been trading between the moving averages, indicating indecision between the bulls and bears regarding the next directional move. In a tight consolidation like this, a range expansion typically follows. If buyers push the price above the 20-day exponential moving average ($27,110), the BTC/USDT pair could rise to $28,143. However, the bears are expected to put up a strong defense at this level. On the other hand, if the price drops below the 50-day simple moving average ($26,671), it would signal bearish dominance. The pair may fall to $25,990 and then to the pivotal support at $24,800, which is likely to attract aggressive buying by the bulls.
Solana Analysis:
Solana has been engaged in a tough battle between bulls and bears near the 20-day exponential moving average ($21.77). This indicates that bulls are trying to flip this level into support. If the level at $22.50 is crossed, the SOL/USDT pair could rise to the neckline of an inverse head and shoulders pattern, completing a bullish setup. However, a break and close above the resistance at $27.12 could lead to a surge towards the target objective at $32.81. On the downside, if the price drops below the 50-day simple moving average ($20.50), it would invalidate the bullish view and could lead to a descent towards $18.58 and then $15.33.
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Lido DAO Analysis:
Lido DAO has been trading near the moving averages, indicating that bears may be losing their grip. If the immediate resistance at $1.73 is cleared, the LDO/USDT pair could climb to the downtrend line, facing another potential battle between bulls and bears. On the downside, if the price falls below the moving averages, it would suggest that bears are in control and selling on every rally. This could result in a retest of the vital support at $1.38.
Internet Computer Analysis:
Internet Computer has been consolidating within a tight range between $2.86 and $3.35 for the past few days. The RSI has formed a positive divergence, indicating a reduction in selling pressure. If the price breaks and closes above the overhead resistance at $3.35, it could signal a potential trend change. The first target on the upside would be $4, followed by $4.50. Conversely, a drop below $2.86 would indicate a resumption of the downtrend.
VeChain Analysis:
VeChain has been trading within a descending triangle pattern, but the price has been holding onto the downtrend line, which is a positive sign. If buyers can push the price above the downtrend line, it would invalidate the negative setup and potentially trigger a new upward move towards $0.021. On the other hand, a drop from the current level would indicate continued bearish defense at the downtrend line, with bears attempting to pull the price towards critical support at $0.014.
Please note that this article does not provide investment advice or recommendations. It is important to conduct your own research and analysis before making any investment decisions.
