Will Altcoin Season Start in May 2024? Top 3 Cryptos to Watch
Bitcoin price was expected to increase following the halving that took place towards the end of April. However, when that did not happen, investors turned to altcoins.
While many anticipate altcoin season to take place soon, the possibility seems low except for these three altcoins.
Bitcoin Dominance Is Rising Again
Bitcoin dominance reached 56.32% in mid-April and started trickling to 54.34%. But in the last few days, this dominance has grown to almost 55%, threatening the potential of altcoins breaking out and the market noting an altcoin season.
Indeed, altcoin season usually occurs when 75% of the top 50 coins perform better than Bitcoin over the last 90 days. This figure currently stands at 35%, which is far below the threshold for a confirmed altcoin season.
Thus, the chances of an altcoin season in May are pretty low, so it could instead extend to June. Nevertheless, these three altcoins are looking to break out in the coming month.
Ethereum (ETH) Is in a Bullish Reversal Pattern
Ethereum’s price trading at $3,063 failed to breach past the upper trend line of a falling wedge it has been stuck in since March. Following failed attempts in the past, the second biggest crypto asset in the world could break out after bouncing off $2,991 support.
A falling wedge is a bullish chart pattern characterized by converging trendlines sloping downward, indicating a potential reversal from a downtrend. Based on this pattern, the target set for ETH is 16.7% above the upper trend line, marked at $3,695.
Read More: Ethereum ETF Explained: What It Is and How It Works
However, if the support of $2,991 is broken, Ethereum could fall to $2,800, invalidating the bullish thesis.
Helium (HNT) Set to Reverse the Death Cross
Helium’s price has sharply recovered in the past 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, typically signaling a potential downtrend or market weakness ahead.
Nevertheless, the recent recovery is close to not only invalidating the death cross but also forming a golden cross. This could push HNT’s price beyond the $6.33 resistance level to flip it into support. The upswing could enable Helium to enter a 26% rally to reclaim $7 and $8 as support.
Read More: Helium (HNT) Price Prediction 2024/2025/2030
But if the death cross weighs heavier than a potential breakout, a drawdown 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’s price has been moving within a descending channel, but with the support of the 50 and 200-day EMA, a bullish breakout could occur in the coming days.
A breakout above the upper trend line at $0.00002584 could translate to 29% growth for the meme coin, potentially sending it to $0.00003332.
Read More: How To Buy Shiba Inu (SHIB) and Everything You Need To Know
This rise could come in May, provided the meme coin does not witness a decline on the daily chart. Losing the support of $0.00002268 could send SHIB lower to fall below $0.00002000. This would invalidate the bullish thesis, increasing the potential for losses.
The post Will Altcoin Season Start in May 2024? Top 3 Cryptos to Watch appeared first on BeInCrypto.
