Bitcoin Price Chart Shows Bullish Sign That Could Lead to Breakouts in ADA, QNT, RNDR, and RPL

US stock markets welcomed the debt ceiling agreement and May payroll numbers for nonfarm businesses with strong gains on June 2. The S&P 500 was up 1.8% over the week, while the tech-heavy Nasdaq was up 2%. This was the sixth consecutive week of gains for the Nasdaq, the first since January 2020.

In addition to the above, the expectation that the Federal Reserve remains in a pause mode at the next meeting may have acted as a catalyst for the rally. CME’s FedWatch Tool shows a 75% chance of a break, with the remaining 25% expecting a 25 basis point increase at the June 14 meeting.

Equity market rallies did not drive comparable performance in Bitcoin (BTC) and the altcoins. A small positive, however, is that several major cryptocurrencies have stopped falling and are trying to recover.

Can bulls maintain momentum and overcome respective overhead resistance levels? If they do, what are the top five cryptocurrencies that could lead the rally?

Bitcoin price analysis

Bitcoin has been trading near its 20-day exponential moving average ($27,233) for the past three days. This suggests that the bulls are buying the dip near $26,500.

The 20-day EMA has leveled off and the Relative Strength Index (RSI) is just below the midpoint, indicating a balance between supply and demand. This equilibrium will tilt in favor of the buyers if they drive the price above the resistance line of the descending channel pattern. That could start a northward march to $31,000.

If the price drops from the resistance line, it suggests that the BTC/USDT pair can spend a little more time in the channel. The critical level to look down is $25,250. A break and close below this support could intensify sales and pull the price towards $20,000.

The 4-hour chart shows the bears guarding the immediate resistance at $27,350. On the other hand, the pair has reached higher lows in the near term, indicating lower demand. This improves the prospects of a rally over drag. If that happens, the pair may rise to the resistance line of the descending channel.

If bears want to gain the upper hand, they will need to drop the price quickly below the nearest $26,505 support. The next stop on the downside could be $26,360 and then $25,800.

Cardano price analysis

Cardano (ADA) has repeatedly found support on the uptrend line, but the bulls have failed to kick the price above the 50-day simple moving average ($0.38).

A breakout from this tight trading is likely to occur in the coming days. If bulls slide and hold the price above the 50-day SMA, it will set the stage for a possible rally to $0.42 and then to $0.44.

However, if the price drops from the 50-day SMA and drops below the uptrend line, it suggests the start of a deeper correction. The ADA/USDT pair could then dive into strong support at $0.30.

The 4-hour chart shows that the $0.38 level is behaving like a strong obstacle. However, the rising moving averages and the RSI in the positive zone indicate that the bulls have the upper hand. If buyers push the price above $0.38, the pair could rise to $0.40 and then to $0.42.

If the price falls sharply from its current level and moves below the 50-SMA, it will suggest that bears have taken control in the near term. The pair could then collapse to USD 0.36 and later to USD 0.35.

Quantitative price analysis

After staying below the downtrendline for several days, Quant (QNT) reversed and began a recovery on May 26. The bulls continued their buying and pushed the price above the moving averages on May 29, signaling a possible trend change.

The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that the path of least resistance is up. There is a USD 120 barrier, but if bulls overcome it, the QNT/USDT pair could rise to USD 128 and then USD 135.

Contrary to this assumption, if the price falls sharply from $120, the bears will try to pull the price towards the 20-day EMA ($110). This remains the most important level to watch, as a pause below indicates that the bears are back in control.

The 4-hour chart shows that the price is stuck within a trading range between $114.50 and $120. The 20-EMA is flat, but the RSI is in the positive area, indicating that momentum remains bullish. If bulls clear the hurdle at $120, the pair will likely begin the next leg of the up move.

Conversely, if the price drops and falls below $114.50, it suggests that bears have a slight advantage. The pair could then drop to $110 and later to $102. The deeper the fall, the longer it will take to recover.

Related: The low volatility of cryptocurrency markets: a curse or an opportunity?

Render Token Price Analysis

While most of the major cryptocurrencies are struggling to begin a recovery in a downtrend, Render Token (RNDR) has started a new upward movement.

The RNDR/USDT pair fell to the 20-day EMA ($2.48) on May 31, but the bulls successfully defended the level. This shows positive sentiment where traders are buying the dips to strong support levels. The pair could retest the 52-week high of $2.95. If this resistance is overcome, the pair could rise to $3.75.

The first sign of weakness will be a break and close below the 20-day EMA. Such a move will indicate aggressive profit bookings by the short-term bulls. That could open the doors for a possible drop to the 50-day SMA ($2.20).

The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that bulls have the upper hand. Buyers will try to push the price above the overhead resistance zone between $2.90 and $2.95. If they succeed, the pair can start another uptrend.

On the contrary, if the price falls from the current level or overhead resistance and moves below the moving averages, it will suggest that the bears are on a comeback. A break and close below USD 2.42 signals the start of a downward move towards USD 2.25.

Rocket Pool price analysis

Rocket Pool (RPL) has been trading within a bullish channel pattern for the past few days. A positive near-term sign is that the bulls have held the price above the moving averages. This indicates a change in sentiment from selling on rallies to buying on dips.

The RPL/USDT pair has been trading within a tight range for the past few days. This suggests that a range expansion could be just around the corner. If the price breaks and closes above $50.50, it suggests the start of an upward movement towards the channel’s resistance line. The bears are expected to defend this level with all their might.

This positive outlook will become invalid in the near term if the price deviates from its current level and moves below the moving averages. The pair could then drop to the channel’s support line.

The 4-hour chart shows that the bulls are holding the price above the moving averages, but they have failed to clear the $50.37 overhead hurdle. This suggests that bears continue to sell at small gatherings.

If the price falls and moves below the 50-SMA, it indicates that the bulls have given up. The pair could then drop towards the support line near USD 46.

Conversely, if buyers propel and hold the price above $50.50, bullish momentum could pick up and the pair could rise to $53.50.

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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.