Cryptocurrency Price Prediction: Cryptocurrency markets have seen renewed buying interest since Thursday after Bitcoin price reversed from $56,500. The bullish reversal pushed the BTC price to $63,169, marking a 6% increase from yesterday. The altcoin market also experienced a significant rally, with top assets Ethereum (ETH) and Solana (SOL) increasing by 4% in the past 24 hours. Toncoin (TON) and Avalanche (AVAX) posted gains of 5-7%, while leading meme coins Dogecoin and Shiba Inu posted double-digit gains.
The buying momentum can be attributed to the lack of follow-up from the $60,000 support breakdown and notable inflows from spot BTC ETFs.
According to SpotOnChain, on May 3, 2024, the Bitcoin ETF market saw significant inflows, with net inflows reaching $343 million after seven days of decline. Grayscale Bitcoin Trust (GBTC) recorded its first-ever single-day inflow of $63,011,200. Fidelity Wise Origin Bitcoin Fund led the way with $102.6 million, while BlackRock IShares Bitcoin Trust had a modest $13 million. This rally may indicate renewed confidence or strategic buying by investors in the Bitcoin ETF sector.
As the rescue rally gains momentum towards a sustainable recovery, potential buyers can pursue new long opportunities in top assets such as Ethereum (ETH), Cardano (ADA), and Shiba Inu (SHIB).
Also read: 3 factors that could push Bitcoin price to $100,000
1) Ethereum (ETH)
Ethereum (ETH) is a decentralized platform that allows developers to build and deploy smart contracts and decentralized applications (dApps). With a market capitalization of $373.5 billion, Ethereum is the second largest cryptocurrency.
Over the past three weeks, Ether price has traded completely sideways, resonating within two horizontal levels at $3,282 and $2,870. Amid renewed buying interest across the market, ETH price has rebounded 11.9% from the aforementioned lows and is currently settling at $3,149.
With a modest decline of 3.5%, the 24-hour trading volume was swinging at $11.9 billion, indicating that the asset has not yet gained enough bullish momentum. Therefore, to give buyers better control over this coin, we need to get out of the confines of a wedge pattern (a market with two blue trend lines).
If the breakout is successful, the ETH price will likely retest the $4,090 high.
Also read: European bank with $600 billion in assets under management invests in BlackRock Bitcoin ETF
2) Cardano (ADA)
Cardano (ADA) is a blockchain platform designed to achieve sustainability and scalability through a research-driven approach. The general correction trend in ADA price found a suitable bottom at the $0.42 support.
The bullish reversal from this floor has seen the altcoin’s value increase by 13.5% in four days and is currently trading at $0.47. According to Coin Market Cap, Cardano's market capitalization has surged to $18.9 billion, with 24-hour trading volume recorded at $293.5 million.
Analyzing the daily chart, we can see that the recent rally is the formation of a bullish reversal pattern called a double bottom. Under the influence of this pattern, Cardano price is likely to break through the swing high resistance at $0.52, indicating that a change in market dynamics has begun.
The post-breakout rally could have buyers chasing the potential price target of $0.62, then $0.684 and $0.81.
Also read: Cardano Price Analysis: Bottom Formation at $0.4 Expects $ADA to Rise 15%
3) Shiba Inu (SHIB)
Shiba Inu (SHIB) is a memetic cryptocurrency created as a playful alternative to Dogecoin, utilizing the same Shiba Inu as its mascot. Over the past three weeks, SHIB price has shown strong persistence above $0.000002, helped by the slope of his 100-day EMA.
Dual support in conjunction with the recent market recovery has increased the meme coin's value by 23% to its current trading price of $0.00000254. This buying pressure was further fueled by the fact that the Shiba Inu burn rate increased by 1009% in the past 24 hours, resulting in 29.11 million Shiba Inu destroyed.
With continued purchases, coin buyers should break through the immediate resistance at $0.000028 and set the stage for a potential target of $0.00003285, and then $0.000038.
Also read: SHIB News: 211 Billion Shiba Inu dumped on Coinbase, SHIB price reaches all-time high?
Important points
With the Bitcoin price rallying above $60,000, the crypto market gained significant traction leading a new rescue rally. This resurgence is also reflected in the altcoin sector, highlighting its potential to regain previously lost ground. With market participants expecting a post-halving rally soon, such a reversal from the previous correction trend could provide potential investors with a good push opportunity.
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