Numerous altcoins are displaying highly promising bullish signals in May. Donald Trump's recent comments on US inflation could further fuel this momentum. Which cryptocurrencies to invest in before the next bull run?
Former President Donald Trump‘s recent statements on the lack of inflation could provide a new bullish momentum to the crypto market, especially to altcoins. According to the ex-US president, the cost of essential goods such as energy, gasoline, and food is decreasing, suggesting that inflation is no longer a threat. These remarks come just before the highly anticipated release of the Consumer Price Index (CPI) data for April, scheduled for May 13.
The market is currently expecting an annual inflation rate between 2.4% and 2.5%. The Federal Reserve recently maintained its interest rates between 4.25% and 4.50%, a move criticized by Trump who believes that the current monetary policy is too restrictive in the face of almost non-existent inflation.
A lower than expected inflation rate could lead investors to anticipate an upcoming rate cut, thus resulting in a significant increase in investments in altcoins.
The favourable macroeconomic environment makes some altcoins particularly attractive for May. Three of them stand out clearly: Ripple (XRP), Pi Network (PI), and Pepe Coin (PEPE).
Currently, XRP is priced at $2.46, after a significant 8% drop in the past few hours and a local high of around $2.65. Technically, XRP has recently confirmed an “inverse head and shoulders” pattern, a strong bullish signal indicating a potential target of $3.11. This setup could trigger a rapid rise towards this level, opening the door to a more pronounced recovery, possibly towards its historical highs.
Pi Network is also in the spotlight after a spectacular 100% increase in a week, pushing its price to over $1.60. A potential breakout above the resistance of $1.79 could quickly propel the price towards the key level of $2.83.
However, it faced a strong rejection from the $1.6 resistance zone, leading to a 46% drop in a few hours. At the time of writing, PI is priced at $1.03. In the short term, confirmation of a rebound is needed, as the drop could trigger panic and push PI’s price to $0.60 in the coming weeks.
The memecoin PEPE is also gearing up for an explosive move thanks to an imminent “golden cross” on its daily chart, where the 20-day Exponential Moving Average (EMA) is about to cross above the 200-day EMA. Such a technical setup generally predicts a significant increase, setting an initial target at the 161.8% Fibonacci level of $0.000024.
Currently retraced to $0.000013 following BTC’s drop to $100,000, PEPE also invalidated its uptrend line. Smart money can use these liquidations to accumulate, so it is crucial to closely monitor PEPE’s actions in the next days.
If it holds above the trendline $0.0000134, it could target the next zone at $0.000016. Conversely, if it fails, it might return to $0.0000086 in the following weeks. This could present an opportunity in case of a BTC bounce.
The current period seems particularly favourable to invest in altcoins, especially given the advantageous macroeconomic conditions mentioned earlier. However, caution is advised: closely observing key technical indicators and support and resistance levels before entering the market is crucial.
Amid increased volatility, utilizing a reliable and efficient platform like Bitget can be strategic. Bitget offers various advanced tools allowing both experienced and beginner investors to maximize gains while effectively managing risks.
With controlled leverage, futures trading, and quick market access, Bitget is an ideal solution to fully leverage the potential of altcoins in this favourable period. Here are simple steps to start investing on Bitget:
After several challenging months in the markets, investors and traders are eagerly awaiting the return of a true altcoin season. However, in the face of persistent volatility, adopting a prudent and well-prepared strategy is essential to make the most of upcoming opportunities.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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