Bitcoin Claims $28,000, and Charts Suggest ARB, XRP, EOS, AAVE Could Follow

The United States is trying to avoid a catastrophic debt default after the White House and House Republicans agreed on a tentative deal on May 27. US stock markets rallied in anticipation of the May 26 deal and the positive sentiment has spilled over into the cryptocurrency sector, which is recovering.

Buying is not limited to just Bitcoin (BTC), as select altcoins are also showing signs of near-term upside. However, sustaining the rally at higher levels may prove difficult for the bulls.

Following the debt ceiling deal, traders will likely turn their attention to the Federal Reserve’s interest rate hikes. The hot data on personal consumption spending on May 26 raised the likelihood of a rate hike at the Fed’s June meeting. The probability of a 25 basis point rate hike increased from 17% a week back to 64% on May 28, according to the CME FedWatch Tool.

Which altcoins, along with Bitcoin, seem ripe for a near-term upside? Let’s study the charts of these top five cryptocurrencies to discover the important levels to pay attention to.

Bitcoin price analysis

Bitcoin has reached the upper resistance zone between the 20-day exponential moving average ($27,146) and the support line of the symmetrical triangle. This zone is likely to witness a fierce fight between the bulls and the bears.

If the price drops from the overhead zone, the bears will make another attempt to pull the price towards the central support at $25,250. The bulls are expected to defend the zone between $25,250 and $24,000 with all their might as a break below could intensify sales. The BTC/USDT pair could then drop to $20,000.

On the contrary, if buyers overcome the overhead hurdle and push the price back into the triangle, it suggests strong buying in dips. That increases the chance of a break above the resistance line of the triangle. The pair can then rise to $31,000.

The 4-hour chart shows that the pair is trading within a descending channel pattern and the bears are trying to defend the resistance line. If the price falls from its current level but rebounds from the 20-EMA, it indicates that dips are being bought.

The bulls will then try again to push the price above the channel. If they succeed, the pair could start an upward move towards USD 28,400.

On the contrary, a break below the moving averages will suggest that the pair can extend its stay in the channel a bit longer.

XRP price analysis

XRP (XRP) has formed an inverted head-shoulder pattern, which is completed at a break and closes above the neckline.

The 20-day EMA ($0.45) is gradually moving up and the RSI has jumped into positive territory, indicating that the path of least resistance is up. If bulls hold and hold the price above the neckline, the XRP/USDT pair could start a rally towards the upper resistance zone between $0.54 and $0.58. The pattern target of the bullish setup is $0.55.

This positive outlook will be negated in the short term if the price moves down from the neckline and falls below the 20-day EMA. The pair could then move down to the key support near USD 0.40.

The 4-hour chart shows that the pair is witnessing an uphill battle between the bulls and the bears at the neckline. The rising 20-EMA and the RSI in the positive zone indicate a slight upside for the buyers.

If the price rebounds from the 20-EMA, it increases the chances of a break above $0.48. If that happens, the pair is likely to begin its up move. However, if the price falls and moves below the moving averages, it will tip the short-term advantage in favor of the bears. The pair could then drop to USD 0.44.

Arbitrum price analysis

The bulls pushed Arbitrum (ARB) back above the 20-day EMA ($1.17) on May 28, signaling the start of a possible recovery.

The bears are likely to present a strong challenge at $1.20, but if bulls break this level, the ARB/USDT pair could gain momentum. There is a slight resistance at the 50-day simple moving average ($1.29), but it is likely to be breached. The pair could then rise to USD 1.36 and later to USD 1.50.

If bulls want to avoid the rally, they will have to quickly pull the price back below the 20-day EMA. If they succeed, the pair could drop to $1.06 and then to $1.01. This is an important zone for the bulls to defend because if it bursts, the pair could witness a sharp drop to $0.73.

The 4-hour chart shows that the bulls have pushed the price above the resistance line of the symmetrical triangle pattern. The bears are trying to slow the upward move at $1.20, but if the bulls don’t allow the price to re-enter the triangle, it will increase the prospects for an upside breakout. The setup pattern target is $1.43.

On the contrary, if the price drops and falls back into the triangle, it will suggest that the recent breakout may have been a bull trap. The bears will then try to drop the price back to the support line of the triangle.

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EOS Token price analysis

Eos (EOS) has fluctuated between $0.78 and $1.34 in recent months. Generally, in such a wide range, traders buy close to support and sell close to resistance.

The EOS/USDT pair bounced at $0.81 on May 25 and surged above the 20-day EMA ($0.89) on May 28. This is the first indication that the range remains intact. The bulls will try to push the price towards the 50-day SMA ($1), where the bears are likely to mount a strong defense.

If the next dip finds support during the 20-day EMA, it suggests the bulls are on top. The pair could then rise to $1.11. The bears will need to pull the price below the vital $0.78 support to signal the start of a downtrend.

The recovery effort faces selling near the overhead resistance at $0.93, but the bulls have not given up much ground. The moving averages have completed a bullish crossover and the RSI is near the overbought zone, indicating that the bulls have the upper hand.

If buyers push the price above $0.93, the pair could pick up momentum and rise to the psychological level of $1 and then $1.11. This positive outlook may become invalid in the near term if the price falls and falls below the moving averages.

Aave price analysis

Aave (AAVE) falls within a descending channel pattern, which generally behaves like a bullish setup.

After struggling near the 20-day EMA ($65.50) for the past few days, the bulls pushed the price above resistance on May 27. This suggests the start of a possible relief rally.

The AAVE/USDT pair may first rise to the 50-day SMA ($70) and then attempt a rally to the resistance line. A break and close above this level can trigger a short-term upward movement.

Contrary to this assumption, if the price falls from its current level and falls below the 20-day EMA, it will suggest that demand is drying up at higher levels. The next lower support is $62.

The 4-hour chart shows the formation of an ascending triangle pattern to complete at a break and close above $67.40. The pair could then make an upward move towards the USD 74 pattern target.

Instead, if the price falls from its current level, it indicates that bears are fiercely protecting the $67.4 level. If the price drops below the moving averages, it suggests that the pair may remain within the triangle for some time to come. A break below the triangle invalidates the positive setup, tipping the advantage in the Bears’ favour.

This article does not contain any investment advice or recommendations. Every investment and trading move involves risk and readers should do their own research when making a decision.

This article is for general information purposes and is not intended to and should not be construed as legal or investment advice. The views, thoughts and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.