The market is volatile, what do you think about the future market?
Bullish!
There are three reasons: the election, interest rate cuts, and new capital inflows
1. General Election
No matter which party is elected as president, there must be certain benefits to the people and good policies in order to attract enough votes! The simplest and crudest way is to (release money, give money to institutions and people) and promise the direction of the economy. This is a very good positive. The general election will be held on November 5. According to the last election and the previous one, the positive effects will be gradually released in two months. This time the good policies will start in early August 2024.
2. Interest rate cuts
Goldman Sachs, Citigroup, and BlackRock data show that the CPI data for 2024 will show a significant decline in inflation. A rate cut is inevitable. Many institutions and US stock traders predict that the rate cut will be in Q3 and Q4. The US dollar is not in recession, but continues to strengthen! (The Federal Reserve has experienced six interest rate hike cycles, and each time after the rate hike, the money supply will be more intense, and this time will be no exception.
3. New capital enters the market
The Web3 industry is seen as an emerging market with great potential within three years. A lot of new capital has entered the market, bringing more funds into the market. RWA is a very good track! The world's largest asset management company (BlackRock) has entered the market. According to BlackRock's official spot Bitcoin exchange-traded fund data, as of May 2, IBIT's Bitcoin holdings reached 273,824.243 BTC. The gradual outbreak of the wealth effect will bring in more new capital.
3 Altcoins with High Return Potential
1.WIF
Dogwifhat (WIF) has seen a lot of price volatility, rising from $2.2 to $3.37 in a short period of time, an increase of more than 13%. This strong upward momentum is driven by bullish traders who are trying to push the price towards the critical resistance level of $3.6. A breakout of this resistance could mark the start of a new uptrend that could lead the WIF/USDT pair to a new all-time high.
→ Concerns and potential recession
However, there are some signs of caution. The relative strength index (RSI) has been hovering near the overbought zone, indicating that the market may be overheated. This could lead to a correction or a period of stabilization. It is crucial to monitor the $2.9 support level to avoid a sharp decline. If WIF fails to hold this support, it may experience a deeper correction.
→Future Outlook
The future outlook is positive if WIF can break above the $3.6 resistance level. This would indicate that the bullish momentum has strong support and could lead to further gains. However, given that the RSI could indicate overheating, which could spark selling, caution is advised.
2.GLM
Golem (GLM) showed significant strength by breaking out of a period of consolidation around the $0.43 level to reach $0.57, an impressive gain of 26% in the past 24 hours. This breakout caught the attention of investors, indicating a shift to a bullish trend.
→Support and resistance levels
The continued buying activity at higher prices suggests steady investor sentiment. The moving averages are expected to provide support with a target of $0.75. If the GLM/USDT pair manages to break above this level, it could pave the way for further gains, potentially above $1.4.
→Risks and possible downside
However, there are some risks to consider. A break below the moving averages could signal a turn to selling, indicating a change in market sentiment. If this happens, the bullish momentum could falter, leading to a possible downward correction.
3. HNT
Helium (HNT) faced challenges in breaking the $6 resistance level. Despite this, the price rose to $5.6, up 33% from the previous day. This rise gave hope to bullish traders who aim to push HNT to new resistance targets.
→ Future growth indicators
Several indicators point to potential growth for HNT. The rising 20-day exponential moving average (EMA) and positive RSI suggest a bullish trend. This could lead to a breakout above the $6.4 and $11.2 resistance levels, providing new growth opportunities.
→ Potential risks
Nonetheless, risks remain. If HNT breaks below $4, bears could gain control and push the price towards $3.4. This emphasizes the need to carefully monitor support levels and market sentiment to ensure that the bullish trend does not reverse.
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