5 Altcoins to Watch in May
The evolving landscape of the cryptocurrency market has positioned Harmony (ONE), Render (RNDR), Near Protocol (NEAR), Dogwifhat (WIF), and Stellar Lumens (XLM) for potential gains.
BeInCrypto has examined the possible trajectories these cryptocurrencies might take and their implications for the broader crypto market.
Harmony (ONE) Achieves a New Benchmark
ONE has notably exceeded $1 million in transaction volume, indicating increased usage and demand that could enhance its price dynamics.
At the time of writing, the altcoin is navigating a descending wedge pattern, with a potential breakout anticipated in the upcoming month. Accordingly, Harmony could experience a surge of over 36% to reach a target price of $0.034, marking a two-month peak.
ONE/USDT 1-day chart. Source: TradingView
The likelihood of this scenario is quite high, as indicated by the Average Directional Index (ADX). This tool assesses the strength of the current trend, and with a reading above the 25.0 threshold, it suggests that the trend is intensifying.
Nevertheless, should the altcoin break below this wedge, it could forfeit its bullish momentum and drop below $0.015, setting a new three-month low for Harmony’s price.
Dogwifhat (WIF) Takes Charge in the Meme Coin Market Surge
While Solana meme coins were vying for supremacy with PEPE, WIF swiftly took the lead, overtaking PEPE to become the world’s third-largest meme coin. It appears this upward trajectory will persist into the next month.
Currently, the meme coin is observed trading within an isosceles triangle pattern. According to this pattern, a breakout in WIF’s price is anticipated, which could potentially elevate the meme coin to $4.8. This represents a 51% increase for Dogwifhat, further solidifying its dominance in the market.
WIF/USDT 1-day chart. Source: TradingView
However, there’s a possibility that WIF could lose support if holders decide to sell. In such a case, the meme coin might drop below the $2.5 support level and test $2.0 as the next support floor, which would negate the bullish scenario.
Near Protocol (NEAR) Approaches 2024 Peak
The NEAR price is expected to benefit significantly from the upcoming Bitcoin halving event, likely driving altcoin prices higher. Recently, NEAR rebounded from the $5.2 support level to trade at $7.2.
The altcoin is close to reaching the 61.8% Fibonacci Retracement level between $8.8 and $5.2, marked at $7.4. This level is recognized as the bull market support floor. If NEAR can reclaim this level, it could pave the way for the price to surge past the $8.8 barrier, setting a new high for 2024.
NEAR/USDT 4-hour chart. Source: TradingView
However, if NEAR falls to $6.0 or below, it would also breach the 23.6% Fibonacci line, leaving the altcoin susceptible to further corrections and negating the bullish perspective.
Render (RNDR) Capitalizes on AI Momentum
The optimism surrounding Artificial Intelligence (AI) has revived in Q2, driving bullish sentiment and lifting AI-related tokens. Render has been experiencing a downtrend over the past month.
With a renewed interest in AI, RNDR’s price could position itself as a potential recovery asset. The anticipated movement for RNDR involves rebounding from the $8.0 support level to potentially break and convert the $10.0 resistance, aiming towards its all-time high.
RNDR/USDT 4-hour chart. Source: TradingView
However, should RNDR lose its $8.0 support, the price could drop to $6.8. A fall through this level could entirely erase the potential for a bullish outcome.
Stellar (XLM) Offers Promising Prospects
Although Stellar isn’t undergoing any significant developments, it remains one of the underappreciated assets in the cryptocurrency market. Currently, XLM is trading within a descending wedge.
Following this pattern, a breakout could propel XLM to $0.142, representing a 23% increase. This movement could set XLM on a path to reach a new all-time high by surpassing the $0.160 mark.
XLM/USDT 1-day chart. Source: TradingView
Despite the Relative Strength Index (RSI) being below the neutral threshold, indicating a potential weakening of the uptrend, there remains a possibility that the decline might persist. If this scenario unfolds for XLM, the cryptocurrency could drop below the $0.10 support level. Such a movement would negate the bullish outlook and potentially drive the altcoin’s price further down, below $0.09.
