Bitcoin reclaims $28K, and charts suggest ARB, XRP, EOS and AAVE could follow

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The United States is trying to avoid a catastrophic debt default after the White House and House Republicans agreed to a tentative deal on May 27. US stock markets rallied on hopes of a deal on May 26, and that positive sentiment spilled over into cryptocurrencies. Sector trying to recover.

Some altcoins are also showing signs of a short-term rally, and buying is not limited to Bitcoin (BTC) alone. However, it may be difficult for the bulls to sustain the rally at higher levels.

Traders are likely to focus on a rate hike by the U.S. Federal Reserve after a deal to raise the debt ceiling. Strong May 26 consumer spending data increased the chances of a rate hike at the Fed’s June meeting. The probability of a 25 basis point rate hike rose from 17% per week to 64% on May 28, according to CME FedWatch. tool.

Alongside Bitcoin, what altcoins seem ripe for short-term upswing? Let’s study the charts of these top five cryptocurrencies to identify the key levels to watch out for.

Bitcoin price analysis

Bitcoin has reached the overhead resistance zone between the 20-day exponential moving average ($27,146) and the symmetrical triangle support line. A fierce battle between bulls and bears is likely to be seen in this zone.

If the price turns down from the overhead zone, the bears will again try to push the price to the critical support of $25,250. The bulls are expected to fully defend the zone between $25,250 and $24,000, below which selling may intensify. After that, the BTC/USDT pair could drop to $20,000.

Conversely, if buyers overcome overhead obstacles and push the price back into the triangle, it would suggest strong buying on dips. This increases the chances of a breakout of the triangle resistance line. The pair can then move up to $31,000.

The 4-hour chart shows that the pair is trading inside a descending channel pattern and the bears are trying to defend the resistance line. If the price breaks down from the current level but bounces off the 20-EMA, it indicates a buy on the dip.

After that, the bulls will try to push the price above the channel again. If successful, the pair can start a rally to $28,400.

Conversely, a break below the moving averages suggests the pair may extend their stay inside the channel a little longer.

XRP price analysis

XRP (XRP) is forming an inverted head and shoulders pattern that will complete with a break and close above the neckline.

The 20-day EMA ($0.45) is edging upwards and the RSI has jumped into positive territory, indicating the path of least resistance is to the upside. If the bulls hold and hold the price above the neckline, the XRP/USDT pair could start a rally to the overhead resistance zone between $0.54 and $0.58. The pattern target for the bullish setup is $0.55.

This positive view will be overwhelmed in the short term if the price turns down from the neckline and breaks below the 20-day EMA. After that, the pair can drop to the critical support near $0.40.

The 4-hour chart shows the pair witnessing a fierce battle between the bulls and bears near the neckline. The rise of the 20-EMA and the RSI in the positive zone show that there is a slight advantage for buyers.

A rebound from the 20-EMA will increase the likelihood of a breakout of $0.48. If so, the pair is likely to start moving up. Alternatively, if the price falls below the moving averages, the short-term advantage will tip in favor of the bears. After that, the pair can fall to $0.44.

Arbitrage price analysis

The bulls pushed the Arbitrum (ARB) above the 20-day EMA ($1.17) on May 28, signaling a possible recovery.

A strong challenge is likely for the bears at $1.20, but the ARB/USDT pair could pick up momentum if the bulls break out of this level. There is minor resistance at the 50-day simple moving average ($1.29), which is likely to be crossed. The pair can then move up to $1.36 and then to $1.50.

The price must drop below the 20-day EMA as soon as possible if the bulls want to stop the rally. If that happens, the pair can drop to $1.06 and then $1.01. This is an important zone for the bulls to defend as a breakout of this could lead to a plunge to $0.73.

The 4-hour chart shows that the bulls are pushing the price above the symmetrical triangle pattern of resistance. The bears are trying to stop the rally at $1.20, but if the bulls do not allow the price to re-enter the triangle, the probability of an upside breakout will increase. The setup pattern target is $1.43.

Conversely, if the price falls back into the triangle, it suggests that the recent breakout may have been a bull trap. The bears will then try to push the price back towards the triangle support line.

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EOS token price analysis

EOS (EOS) has been trading between $0.78 and $1.34 for the past few months. Generally, in such a wide range, traders buy near the support and sell near the resistance.

The EOS/USDT pair bounced back from $0.81 on May 25 and broke above the 20-day EMA ($0.89) on May 28. This is the first indication that the range is holding. The bulls will try to push the price towards the 50-day SMA ($1), while the bears are likely to mount a strong defense.

If the next decline finds support at the 20-day EMA, it will suggest that the bulls are on top. After that, the pair can rally to $1.11. The bears will need the price to sink below the critical support of $0.78 to signal the start of the downtrend.

The recovery attempt faces selling near $0.93 overhead resistance, but the bulls have yet to concede much. The moving averages have completed a bullish crossover and the RSI is near the overbought zone, indicating that the bulls have the upper hand.

If buyers push the price above $0.93, the pair can gain momentum and move towards the psychological levels of $1 and then $1.11. This positive view may be invalidated in the short-term if the price falls below the moving averages.

Aave price analysis

Aave (AAVE) is trapped inside a descending channel pattern that generally behaves as a bullish setup.

After struggling near the 20-day EMA ($65.50) for the past few days, the bulls broke the price above resistance on May 27. This suggests that a bailout backlash may begin.

The AAVE/USDT pair may first move up to the 50-day SMA ($70) before attempting a rally to the resistance line. A break and close above this level could initiate a short-term uptrend.

Contrary to this assumption, if the price turns down from the current levels and breaks below the 20-day EMA, it suggests that higher levels will dry up demand. The next lower support is at $62.

The 4-hour chart shows the formation of an ascending triangle pattern that completes on the break and ends above $67.40. After that, the pair may start a rally towards the pattern target of $74.

Rather, if the price turns down from the current levels, it will show that the bears are defending the $67.4 levels hard. If the price breaks below the moving averages, it suggests that the pair may stay inside the triangle for a while longer. A break below the triangle negates the positive setup and tilts the advantage in favor of the bears.