Altcoins
Will Altcoin Season Start in May 2024? 3 cryptos to follow
The price of Bitcoin is expected to rise after the halving that occurred at the end of April. However, when this did not happen, investors turned to altcoins.
While many expect altcoin season to happen soon, the possibility seems low, except for these three altcoins.
Bitcoin Dominance Rises Again
Bitcoin Dominance reached 56.32% in mid-April and started to reach 54.34%. But in recent days, this dominance has reached almost 55%, threatening the potential for altcoins to break out and the market seeing an altcoin season.
Indeed, altcoin season typically occurs when 75% of the top 50 coins are performing better than Bitcoin over the past 90 days. This figure currently stands at 35%, which is well below the threshold for a confirmed altcoin season.
So, the chances of an altcoin season in May are quite low, so it could extend into June. Nonetheless, these three altcoins are expected to break out over the coming month.
Ethereum (ETH) is in a bullish reversal pattern
Ethereum price at $3,063 has failed to break above the upper trendline of a descending wedge it has been stuck in since March. After failed attempts in the past, the world’s second-largest crypto asset could break out after bouncing off $2,991 support.
A falling wedge is a bullish chart pattern characterized by converging downward-sloping trend lines, indicating a potential reversal of a downtrend. Based on this model, the goal set for ETH is 16.7% above the upper trendline, marked at $3,695.
Learn more: Ethereum ETF explained: what it is and how it works
Ethereum Price Performance. Source: Trading View
However, if the $2,991 support is broken, Ethereum could fall at $2,800, invalidating the bullish thesis.
Helium (HNT) set to reverse the death cross
The price of helium recovered sharply last week after falling to $3.63. During the decline, the altcoin formed a death cross. This occurs when a 50-day exponential moving average crosses below the 200-day EMA, usually signaling a potential downtrend or upcoming market weakness.
Nonetheless, the recent upswing is poised not only to invalidate the cross of death, but also to form a cross of gold. This could push HNT price beyond the $6.33 resistance level into support. The recovery could allow Helium to enter a 26% rally to reclaim $7 and $8 as support.
Learn more: Helium (HNT) Price Forecast 2024/2025/2030
But if the death cross outweighs a potential breakout, a decline to $3.6 is possible. Losing this level would also invalidate the bullish thesis.
Can Shiba Inu (SHIB) escape from the descending channel?
Shiba Inu price is moving in a descending channel, but with support from the 50 and 200 day EMA, a bullish breakout could occur in the coming days.
A break above the upper trendline at $0.00002584 could result in 29% growth for the meme coin, potentially sending it back to $0.00003332.
Learn more: How to Buy Shiba Inu (SHIB) and Everything You Need to Know
This rise could take place in May, provided that the coin itself does not experience a decline on the daily chart. Losing $0.00002268 Support could send SHIB lower fall below $0.00002000. This would invalidate the bullish thesis, thereby increasing the potential for losses.
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