Altcoins Show Promising Growth as S&P 500 Index Soars Amid Speculation of Federal Reserve's Next Move
Summary:
The S&P 500 Index showed a significant increase last week, yet Bitcoin's growth remained marginal. However, specific altcoins have shown signs of progress, suggesting potential for extended rallies provided that Bitcoin remains stable. Cryptocurrencies Cosmos, Uniswap, Near Protocol, and Axie Infinity have all shown unique trends and potential for growth. The article concludes by advising readers to conduct comprehensive research before making trading decisions, as all investments entail inherent risks.
Last week, the S&P 500 Index reached new heights, increasing by 5.85% - its strongest showing since November 2022. This significant jump was largely driven by speculation that the Federal Reserve will cease increasing rates. In contrast, Bitcoin (BTC) only showed a minimal growth of around 2%. Nevertheless, this development could still be viewed positively by cryptocurrency investors, as it signifies a potential gain for the crypto domain. Many investors were enticed by Bitcoin's rise, leading to a revival in several altcoins that have been floundering for a long period. This growth could potentially trickle down to other coins that have yet to demonstrate similar performance, given Bitcoin remains stable.
Current trends indicate that while Bitcoin stabilizes, select altcoins appear to be gaining momentum. An evaluation of the top five cryptocurrencies reveals potential for extended rallies over the coming days. As it stands, Bitcoin continues trading close to the $35,000 resistance level, while the characteristics of recent price movement suggest a forming ascending channel. This usually forecasts negative repercussions following a dramatic increase.
In terms of Bitcoin, a decrease in price and subsequent plunge below the channel might encourage heavy traders to secure profits, potentially driving the price down to the 20-day exponential moving average ($33,033). However, a strong recoil at this level would imply that the bulls are maintaining control, possibly attempting to elevate the price above $36,000 and recommence the upward trend.
On the other hand, Cosmos (ATOM) broke through the $7.60 resistance on October 30, indicating a double-bottom pattern. The breakout level was effectively defended by the bulls between November 1-3. On November 5, an increase in price above $8.25 signified the revival of the upward trend. If the resistance at $7.60 is effectively countered by the bears, aggressive selling at higher levels may occur, potentially leading to a sudden fall for the 50-day SMA down to $7.07.
In Uniswap's (UNI) case, despite being unable to overcome the $5 hindrance on November 2, the bulls have not handed over the reins to the bears. The proposal for the ongoing trend indicates that if buyers are able to force the price above $5, the UNI/USDT pair could upsurge to $6 and eventually to $6.40.
Near Protocol (NEAR) has performed strongly in the recent past, suggesting that the bulls are attempting a resurgence. A promising sign was the bulls' refusal to allow the price to drop beneath $1.43. This exhibits that investors were reluctant to secure profits as they anticipated the rally to persist.
For Axie Infinity (AXS), although it has been on a robust recovery trail for several days, the bears are consistently pushing back near $6. The AXS/USDT pair could potentially escalate to $6.55 and then to $7 granted they can maintain their momentum.
Please note, this article does not provide investment advice, and any investment or trading move comes with inherent risks. Readers should conduct comprehensive research before making a decision.
Published At
11/6/2023 5:30:00 PM
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