For now, it is undeniable that the global crypto market depends on BTC’s recovery. As the leading coin tried to recover to the $38,000 mark, altcoins like Cosmos, THETA, and Stellar Lumens witnessed a bullish attitude. However, these altcoins will surge to a specific resistance level until Bitcoin breakout the $42,000 area. Let us dive deeper.
Stellar Lumens (XLM)
Firstly, on 1st June, the Stellar network upgraded successfully to protocol 17. The progress saw XLM, its native digital coin gaining by 4%. However, yesterday’s broader market corrections caught the crypto in muddy waters. On its 4-hr chart, XLM had its price declining under the support area, $0.403. Unfortunately, when writing this, the coin lost its recovery chances.
Overturning the $0.403 to support might push the asset towards the $0.407 resistance level. However, the next $0.56 ceiling would likely restrict further gains. Regaining the level over $0.56 might influence a rally. Nevertheless, support from the broader market is necessary for such a move.
The Relative Strength Index (RSI) increased over 50 as crypto bulls tried to control the market. However, the weak average directional index (ADX) indicates sideways fluctuation and a downward trend.
Buyers stormed the Cosmos market to defend the 23.6% Fib level from an anticipated breakdown. However, in the sessions to come, the coin might witness limitations for near tern gains and claiming the vital resistance area at $17.6, 38.2%. In breakout scenarios, market bulls would attempt to attain $2.5, over the 50% area.
Since the May 19 crash, Bollinger Bands have been indicating low market volatility. The ATOM market might continue to witness this situation until BTC reclaims $42,000. Finally, buyers coming in had the MACD nearing a bullish edge.
THETA has had an impressive rally since bouncing back from its previous support, $6. With steady gains, the virtual asset went over the $8.24 resistance area. Keep in mind that THETA defended this level from yesterday’s market pullback. With a bullish attitude, the coins aimed a surge over $10. However, sellers might return nearly the $11 area. Though, any breakouts can prolong THETA’s gains to $12.
For now, analysts expect altcoins to gain with Bitcoin recovery.