The Bitcoin price chart shows a bullish sign that could lead to breakouts in ADA, QNT, RNDR and RPL

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US equity markets welcomed the debt ceiling agreement and May nonfarm payrolls data on June 2 with strong gains. The S&P 500 rose 1.8% during the week while the tech-heavy Nasdaq rose 2%. It was the sixth straight week of gains for the Nasdaq, the first such week since January 2020.

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

Daily view of crypto market data. Source: Coin360

Stock market rallies failed to trigger a similar performance for Bitcoin (BTC) and altcoins. However, a small silver lining is that several major cryptocurrencies have stopped falling and are trying to start a recovery.

Could the bulls sustain the momentum and overcome the respective overhead resistance levels? If so, what are the top five cryptocurrencies likely to lead the rally?

bitcoin price analysis

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

BTC/USDT daily chart. Source: Trading View

The 20-day EMA has flattened out and the Relative Strength Index (RSI) is just below the midpoint, indicating a balance between supply and demand. This equilibrium will tip in favor of the buyers if they push the price above the resistance line of the descending channel pattern. This could trigger a march north towards $31,000.

If the price drops from the resistance line, it will suggest that the BTC/USDT pair might spend more time inside the channel. The critical level to watch on the downside is $25,250. A break and close below this support can intensify selling and pull the price towards $20,000.

BTC/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows the bears holding the immediate resistance at $27,350. On the downside, the pair formed higher short-term lows indicating demand at lower levels. This improves the outlook for a rally above overhead resistance. If this happens, the pair may shoot up to the descending channel resistance line.

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

Cardano Price Analysis

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

ADA/USDT daily chart. Source: Trading View

A breakout of this narrow range trading should occur in the coming days. If the bulls push 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.

Alternatively, if the price declines from the 50-day SMA and dips below the uptrend line, this will suggest the start of a deeper correction. The ADA/USDT pair could then dip towards the strong support at $0.30.

ADA/USDT 4 hour chart. Source: Trading View

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

If the price drops sharply from the current level and crosses below the 50-SMA, it will suggest that the bears have taken control in the short term. The pair may then crash to $0.36 and later to $0.35.

Quantitative price analysis

After remaining below the downtrend line for several days, Quant (QNT) turned around and started a rally on May 26th. The bulls continued to buy and push the price above the moving averages on May 29, indicating a potential trend change.

QNT/USDT daily chart. Source: Trading View

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

Contrary to this assumption, if the price drops sharply from $120, the bears will attempt to drive the price back to the 20-day EMA ($110). This remains the key level to watch as a break below will indicate that the bears have regained control.

QNT/USDT 4 hour chart. Source: Trading View

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

Conversely, if the price declines and drops below $114.50, it will suggest that the bears have a slight advantage. The pair may then drop to $110 and later to $102. The deeper the fall, the longer it takes for recovery to resume.

Related: Low Volatility in Cryptocurrency Markets: Curse or Opportunity?

Render Token Price Analysis

While most major cryptocurrencies are struggling to start a rally in a downtrend, Render Token (RNDR) has started a new upward move.

RNDR/USDT daily chart. Source: Trading View

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

The first sign of weakness will be a breakout and a close below the 20-day EMA. Such a move will indicate aggressive profit taking by short-term bulls. This could open the doors for a possible decline in the 50-day SMA ($2.20).

RNDR/USDT 4 hour chart. Source: Trading View

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

On the contrary, if the price declines from the current level or overhead resistance and crosses below the moving averages, it will suggest that the bears are back. A breakout and close below $2.42 will signal the start of a downward move towards $2.25.

Rocket Pool Price Analysis

Rocket Pool (RPL) has been trading in an ascending channel pattern for several days. A short-term positive sign is that the bulls have held the price above the moving averages. This indicates a shift in sentiment from selling on rallies to buying on declines.

RPL/USDT daily chart. Source: Trading View

The RPL/USDT pair has been trading in a narrow range for the past few days. This suggests that a range expansion may be imminent. If the price breaks and closes above $50.50, it will suggest the start of a rally towards the resistance line of the channel. The bears are supposed to defend this level with all their might.

This positive view will be invalidated in the short term if the price declines from the current level and breaks below the moving averages. The pair could then drop to the support line of the channel.

RPL/USDT 4 hour chart. Source: Trading View

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

If the price declines and falls below the 50-SMA, it will indicate that the bulls have given up. The pair could then drop to the support line near $46.

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

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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