Will Altcoin Season Begin in May 2024? Top 3 Cryptocurrencies to Keep an Eye On
Bitcoin’s halving in April did not lead to the anticipated price increase, causing investors to turn their attention to altcoins. While many are hopeful for the start of altcoin season, the chances of it happening soon seem slim, except for three specific altcoins.
Bitcoin dominance has been on the rise again, climbing from 54.34% to almost 55%. This increase in dominance threatens the potential breakout of altcoins and the arrival of altcoin season. Currently, only 35% of the top 50 coins have outperformed Bitcoin in the last 90 days, falling short of the threshold needed for a confirmed altcoin season.
As a result, it is unlikely that altcoin season will begin in May and may extend into June. However, there are three altcoins that show signs of breaking out in the coming month.
Ethereum (ETH) is exhibiting a bullish reversal pattern. Despite failing to surpass the upper trend line of a falling wedge formation it has been stuck in since March, Ethereum could potentially break out after bouncing off the $2,991 support level. If the bullish thesis holds, the target for ETH is set at $3,695, representing a 16.7% increase. However, if the $2,991 support is breached, Ethereum could fall to $2,800, invalidating the bullish thesis.
Helium (HNT) has experienced a sharp recovery after forming a death cross, which occurs when the 50-day EMA crosses below the 200-day EMA. This recovery not only invalidates the death cross but also has the potential to form a golden cross. If this happens, HNT’s price could surpass the $6.33 resistance level and rally by 26% to reclaim $7 and $8 as support. Conversely, if the death cross prevails, HNT may experience a drawdown to $3.6, invalidating the bullish thesis.
Shiba Inu (SHIB) has been trading within a descending channel, but with the support of the 50 and 200-day EMA, a bullish breakout could occur in the near future. Breaking above the upper trend line at $0.00002584 could lead to a 29% growth for the meme coin, potentially reaching $0.00003332. However, if SHIB loses support at $0.00002268, it could decline below $0.00002000, invalidating the bullish thesis.
In conclusion, altcoin season starting in May 2024 seems unlikely based on current market conditions. However, Ethereum, Helium, and Shiba Inu show potential for breakout and growth in the coming month. As with any investment, it is important to consider the risks and conduct thorough research before making any decisions.