These four altcoins could be poised for a rally if Bitcoin breaks above $27,500

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Inexperienced traders usually look for higher prices at the end of the bull run because they fear missing the rally. However, institutional investors tend to wait for the foam to settle before entering. The Bitcoin (BTC) bear market in 2022 ended the hype seen in 2021.

Fred Pye, CEO of 3iQ, Canada’s first Bitcoin fund issuer, said in an interview with Cointelegraph that as FOMO in Bitcoin disappeared, institutional investors and portfolio managers began to take it as a serious place. .

Daily view of crypto market data. Source: Coin360

While analysts are bullish in the long term, the near term picture looks uncertain as the price has been stuck in a range for several days. Analysts expect a trend move to start next week or the week after.

If Bitcoin breaks out higher, which altcoins could follow it higher? Let’s analyze the charts of the top five cryptocurrencies that are likely to rally in the short term.

bitcoin price analysis

Bitcoin traded near the support line of the symmetrical triangle, but the bulls failed to push the price above it. This indicates that the bears are active at higher levels.

BTC/USDT daily chart. Source: Trading View

The descending 20-day exponential moving average ($27,481) and relative strength index below 42 indicate that the bears have an advantage.

If the sellers drive the price below the immediate support at $26,361, the BTC/USDT pair could drop to the crucial support zone between $25,800 and $25,250. Buyers are expected to protect this area with all their might as if they fail, the pair could drop to $20,000.

Conversely, if the bulls drive the price above the 20-day EMA, it could attract further buying. The pair could then rise towards the resistance line of the triangle. If this barrier is overcome, the pair can start its journey towards $32,400.

BTC/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows the formation of a symmetrical triangle pattern, indicating uncertainty between bulls and bears. The flattening of the moving averages also indicates a balance between supply and demand.

If the price breaks below the triangle, the short-term trend will turn negative and the pair could fall to $25,800. The triangle pattern target is $24,773.

This bearish view will be canceled if the price breaks above the triangle. The pair could then climb to $28,400 and then to the pattern target of $29,165.

XRP Price Analysis

XRP (XRP) tries to start a recovery. Buyers have been holding the price above the 20-day EMA ($0.45) since May 16, but they were unable to overcome the hurdle of the 50-day SMA ($0.47 ).

XRP/USDT daily chart. Source: Trading View

The 20-day EMA has started to appear and the RSI is just above the midpoint, indicating that the bulls have a slight advantage. This increases the likelihood of a rally above the 50-day SMA. The XRP/USDT pair could then start a rally to $0.54 and possibly to $0.58. This area is likely to witness aggressive selling by the bears.

The first support to watch on the downside is the 20-day EMA. Sellers will need to pull the price below this level to gain the upper hand. The pair can then drop to $0.43 and later to the crucial support at $0.40.

XRP/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the rally has reversed from the downtrend line. This shows that the bears are fiercely guarding the downtrend line. The sellers attempt to hold the price below the 20-EMA and stretch the pullback to the 50-SMA.

Instead, if the price rises from the current level and climbs above the downtrend line, it will suggest the start of a short-term bullish move. There is a minor resistance at $0.48 but it is likely to be broken. The pair could then rally to $0.54.

Litecoin Price Analysis

Litecoin (LTC) has been trading in a tight range between the 50-day SMA ($89) and the broad resistance at $96 for the past few days. This shows the indecision between bulls and bears.

LTC/USDT daily chart. Source: Trading View

The 20-day EMA ($88) has risen and the RSI is in positive territory, indicating that the bulls have the advantage. This improves the outlook for a rally above the resistance at $96. If that happens, the LTC/USDT pair could rally to $106. This level could once again attract strong selling by the bears.

This positive view will be invalidated in the short term if the price declines and falls below the moving averages. Such a move will suggest that the pair could remain stuck between $79 and $96 for some time to come.

LTC/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the bulls are trying to defend the 20-EMA. This indicates a shift in sentiment from selling on rallies to buying on declines. If the price bounces off the current level, the bulls will again attempt to clear the overhead hurdle at $96.

However, the bears are not going to give up without a fight. They are trying to drive the price down below the 20-EMA. If they succeed, the pair may crash down to the 50-SMA. A collapse of this support could open the doors for a drop to $86 and then $82.

Related: Bitcoin, Ethereum Bears Regain Control Two Derivative Metrics Suggest

Render Token Price Analysis

Render Token (RNDR) is in an uptrend. The buyers pushed the price above the broad resistance of $2.60 on May 21, but the long wick on the candlestick shows selling at higher levels.

RNDR/USDT daily chart. Source: Trading View

The ascending moving averages and the RSI just below the overbought zone indicate that the bulls are in charge. The buyers will make another attempt to propel the price above the psychological barrier at $3. If they succeed, the RNDR/USDT pair could rally to $3.35.

The first support to watch on the downside is the 20-day EMA ($2.10). If this level breaks, it will suggest that the break above $2.60 may have been a bullish trap. The pair could then plunge into the 50-day SMA ($1.87).

RNDR/USDT 4 hour chart. Source: Trading View

The bulls are struggling to hold the price above the overhead resistance at $2.60, indicating the possibility of an upside trap. The sellers will attempt to strengthen their position by pulling the price below the immediate support at the 20-EMA. If they do, the pair may decline to the 50-SMA.

However, rising moving averages and the RSI in the overbought zone suggest that lower levels are likely to be bought. If the buyers push and hold the price above $2.60, the pair could rise to $3.

Conflux Price Analysis

Conflux (CFX) is trading inside a descending channel pattern. The bulls bought the decline from the support line on May 12, indicating strong demand at lower levels.

CFX/USDT daily chart. Source: Trading View

The 20-day EMA ($0.29) has flattened out and the RSI is near the midpoint, suggesting selling pressure has subsided.

Buyers attempted to breach the overhead hurdle at the 50-day SMA ($0.32) on May 16, but the bears held firm. A small positive in favor of the bulls is that they did not allow the price to drop back below the 20-day EMA. This signals buying on dips.

The bulls are likely to make another attempt to propel the price above the 50-day SMA. If successful, the CFX/USDT pair could reach the downtrend line, which again is likely to act as formidable resistance.

CFX/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows the price correcting the strong rally from $0.22 to $0.33. The buyers are trying to defend the 38.2% Fibonacci retracement level of $0.29, which is a positive sign.

If the buyers are holding the price above the resistance line, it will suggest that the bulls are back in command. The pair may rise to $0.33 first and then to $0.37. Alternatively, a breakout and close below $0.29 could trigger a deeper correction towards $0.28 and then 0.27.

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

This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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