Cryptocurrencies and stocks rebounded on Wednesday after the weak US inflation data and as investors bought the recent dip. Bitcoin approached the key $70,000 level while futures tied to the Dow Jones and Nasdaq 100 indices rose by 365 and 150 points, respectively. Here is the outlook for some of the more followed cryptocurrencies on Wednesday: Render Token (RNDR), Floki, and Arweave (AR).
Render Token price
Render Token has been under pressure this week as the altcoin sell-off gained steam. It crashed from this month’s high of $11.86 to a low of $7.98
The token then bounced back after the encouraging US inflation data, which came a few hours before the Fed delivers its interest rate decision. Render and other tokens should benefit if the Fed points to future rate cuts.
On the daily chart, as the token bounced back, it formed a bullish engulfing pattern, a popular sign of a reversal. At the time of writing, it was attempting to cross the 100-day Exponential Moving Average (EMA).
Render has also rebounded above the 38.2% Fibonacci Retracement point. It also remains below the Woodie pivot point. Therefore, these gains should be taken with a grain of salt since the token has formed a double-top pattern.
A likely scenario is where it resumes the bearish trend as sellers target the key support at $7.9890, its lowest level this week.
Arweave price forecast
Arweave, a leading player in the Web3 storage industry, has been under pressure after peaking at $49.82 on May 18th. It has moved into a deep bear market after crashing by over 30% from that peak.
Arweave has crashed below the 50-day moving average and is hovering slightly above the first support of the Woodie pivot point. On the positive side, the token has formed what looks like an inverse head and shoulders (H&S) pattern, which is a popular bullish sign.
Arweave also remains between the middle and the first support line of the Schiff pitchfork tool. Therefore, the outlook for the token is mildly bullish, with the next target level being at the Woodie pivot point at $41.70.
This view will become invalid if the token drops below the first support at $33.68 since it will invalidate the inverse H&S pattern.
Floki price analysis
Floki, one of the most popular meme coins has also plunged hard in the past few days. It crashed from the year-to-date high of $0.0003485 to a low of $0.0002195 on Wednesday.
This decline happened as the pair formed a double-top pattern at $0.0003140 whose neckline was at $0.0001130. In most cases, this is one of the most bearish patterns in technical analysis.
On the positive side, the token has found support at the 50-day and 100-day Exponential Moving Averages (EMA).
Therefore, the token’s outlook is bearish, with the next reference level to watch being at $0.00017, which is about 30% below the current level. The alternative scenario is where the token rebounds and hits the upper side of the double-top at $0.0003140.
