As the cryptocurrency market continues to evolve, new trends and patterns are emerging that could potentially have an impact on prices in the short-term future. For example, inexperienced traders often chase prices higher during the end of a bull phase, fearing that they will miss out on the rally. However, institutional investors tend to wait for the froth to settle before entering the market. This is because they are often more focused on long-term growth rather than short-term gains.
This trend has been seen in the market for Bitcoin, which experienced a bear market in 2022 after a period of hype in 2021. Fred Pye, CEO of 3iQ, Canada’s first Bitcoin fund issuer, noted in an interview with Cointelegraph that the FOMO (fear of missing out) in Bitcoin is now gone, and institutional investors and portfolio managers are taking a more serious look at it.
Despite this, analysts agree that the short-term picture for Bitcoin is somewhat uncertain. Prices have been stuck within a range for the past several days, and analysts anticipate that a trending move will begin either next week or the week after. If Bitcoin breaks out to the upside, it could potentially trigger a rally in certain altcoins. Here, we will analyze the charts of the top five cryptocurrencies that may rally in the short-term.
Bitcoin has been trading near the support line of a 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 and the relative strength index below 42 further indicate that bears have an advantage.
If the sellers sink the price below the immediate support at $26,361, Bitcoin may tumble to the crucial support zone between $25,800 and $25,250. However, buyers are expected to protect this zone with all their might. Conversely, if bulls kick the price above the 20-day EMA, it may attract further buying, potentially pushing the pair toward the resistance line of the triangle before starting its journey to $32,400.
XRP is trying to start a recovery. Buyers have been sustaining the price above the 20-day EMA since May 16, but they haven’t been able to overcome the obstacle at the 50-day SMA. The 20-day EMA has started to turn up, and the RSI is just above the midpoint, indicating that bulls have a slight advantage. This increases the likelihood of a rally above the 50-day SMA. If that happens, XRP could start a rally to $0.54 and eventually to $0.58. The first support to watch on the downside is the 20-day EMA, and sellers will have to yank the price below this level to gain the upper hand.
Litecoin has been trading in a tight range between the 50-day SMA and the overhead resistance of $96 for the past few days. The 20-day EMA has turned up and the RSI is in the positive territory, indicating that the bulls have the edge. This increases the prospects of a rally above the resistance at $96. If that happens, Litecoin could rally to $106, although this level is likely to attract strong selling by the bears.
Render Token is in an uptrend. The upsloping moving averages and the RSI just below the overbought area indicate that bulls are in command. If buyers manage to maintain the price above the psychological barrier at $3, the pair could soar to $3.35. The first support to watch on the downside is the 20-day EMA.
Conflux is trading inside a descending channel pattern. The 20-day EMA has flattened out, suggesting that the selling pressure has reduced. Buyers are likely to make one more attempt to push the price above the 50-day SMA, which could result in a rally to the downtrend line. If buyers sustain the price above the resistance line, the pair may rise to $0.33 and thereafter to $0.37.