Welcome to our latest crypto market outlook for May 7th!
The crypto market has been recovering quickly, while traders are closely watching the Fed’s interest rate decision tonight. Expect high volatility for the rest of the week — a great opportunity to catch big movements. Here are five interesting altcoins on my watchlist this week: ENA, INJ, LRC, PENDLE, and VANA.
Today, we will cover the following topics:
– BTC Analysis
– 5 Altcoins Analysis
– Quotes / Advices
– Closing Remarks
BTC analysis
As highlighted in our last two market outlooks, BTC has been bullish after rejecting the lower bound of the rising wedge pattern marked in blue.
As long as the bulls remain in control, the next resistance lies around the $108,000 all-time high (ATH).
In the medium term, as long as BTC is trading within the flat rising channel marked in blue, the overall bias remains bullish.
A bearish correction toward the $88,500 structure marked in red would be expected only if the lower blue trendline is broken to the downside.
5 Altcoins Analysis
After rejecting the $0.36 resistance zone, ENA has been overall bearish, trading within a broad range between $0.20 and $0.36.
As it approaches the lower bound of the range, we’ll be looking for long setups on lower timeframes.
For the bulls to take over in the medium term, a break above the falling channel marked in red is needed.
Until then, ENA remains bearish, and a move toward the $0.20 support remains possible.
As highlighted in our last market outlook, PENDLE is currently retesting the lower bound of its rising wedge pattern marked in blue.
As long as the lower blue trendline holds, we’ll be looking for trend-following longs targeting the $4 resistance level.
For the bulls to take over in the short term, a break above the recent minor high at $3.30 is needed.
To confirm the next major bullish impulse, a break above the $3.67 key high is required.
INJ has been rejecting a massive weekly support at $6.
As long as this support holds, we expect the bulls to take over, triggering an extended correction phase toward the upper blue trendline and the $20 round number.
To confirm the start of this correction, a break above the inverse head and shoulders neckline marked in red at $11.30 is required.
After being stuck in a range for a couple of months, LRC is finally close to a breakout!
For the bulls to take over, a break above the inverse head and shoulders neckline and the $0.12 resistance is needed.
In the meantime, LRC may still trade lower to retest the $0.08 support zone.
As highlighted in our last altcoin article, VANA is currently rejecting the lower bound of its range and the $5 round number.
As long as the $5 support holds, the only way from here is up.
For the bulls to take over in the long term and push toward the $10 round number, a break above the last weekly high at $6.40 is needed.
For the bulls to take over in the short term, a break above the $5.22 minor high is needed.
To remain in control in the medium term, the bulls must break above the $5.45 level.
Quotes / Advices
Don’t focus on making money, focus on protecting what you have.
~ Paul Tudor Jones
Closing Remarks
In summary, the crypto market is gaining momentum ahead of the Fed’s rate decision, with BTC holding a bullish bias toward the $108K ATH as long as it stays within its rising channel.
ENA remains bearish within its range and could retest the $0.20 support unless it breaks above the falling channel.
PENDLE is holding its rising wedge support, with potential upside if it breaks $3.30 and $3.67.
INJ is bouncing from strong $6 support, with a bullish outlook if it clears $11.30.
LRC is nearing a breakout, but needs to surpass the $0.12 neckline to confirm bullish strength.
VANA is holding the $5 level, with short- and long-term bullish momentum hinging on breaks above $5.22 and $6.40 respectively.
