Altcoins soar while Bitcoin and Ethereum price stall near key levels

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Altcoins moved higher while a lack of buy volume prevented Bitcoin and Ethereum price from breaking out after the completion of a bullish inverse head and shoulders pattern.

On May 26 the the bullish momentum that had propelled Bitcoin and altcoins into a relief rally was somewhat subdued as traders remain unsure of what may happen next. 

After an bit-cointalk.com/news/bitcoin-blasts-past-40k-again-ethereum-nears-3k-is-a-bigger-crypto-rally-looming” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/bit-cointalk.com/news/bitcoin-blasts-past-40k-again-ethereum-nears-3k-is-a-bigger-crypto-rally-looming/amp”>early morning attempt by Bitcoin bulls to drive (bit-cointalk.com/bitcoin-price-index” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/bit-cointalk.com/bitcoin-price-index”>BTC) price above $40,000 was met with stiff resistance, the digital asset lost momentum and slumped back to the $38,000 support level.

BTC/USDT 4-hour chart. Source: TradingView

Despite the continued struggle, a few positive signs like a decline in BTC exchange deposits and an uptrend in addresses accumulating Bitcoin suggest that bit-cointalk.com/news/3-convincing-signs-the-bitcoin-bears-have-stopped-selling” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/bit-cointalk.com/news/3-convincing-signs-the-bitcoin-bears-have-stopped-selling/amp”>bears have stopped selling and the worst of the downturn may have passed.

Earlier in the day, Ether (bit-cointalk.com/ethereum-price-index” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/bit-cointalk.com/ethereum-price-index”>ETH) also rallied close to the $3,000 level but the pullback in BTC price saw the top altcoin fall below $2,800.

Polygon leads the altcoin charge

While a majority of the cryptocurrencies are well below recently established highs, Polygon (MATIC) price bucked the trend by seeking out a clear V-shaped recovery. The altcoin rallied higher today as the project announced the bit-cointalk.com/news/polygon-debuts-sdk-for-building-ethereum-compatible-chains” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/bit-cointalk.com/news/polygon-debuts-sdk-for-building-ethereum-compatible-chains/amp”>launch of its SDK stack that will allow developers to easily deploy their own Ethereum-connected blockchains.

MATIC/USDT 4-hour chart. Source: TradingView

Since May 25, MATIC price has rallied 50% from a low of $1.51 to an intraday high at $2.44 on May 26.

According to data from bit-cointalk.com/?via=markets”>Cointelegraph Markets Pro, market conditions for MATIC have been favorable for some time.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. MATIC price. Source: bit-cointalk.com/?via=markets”>Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for MATIC has been in the green zone for most of the past week and it registered a high of 94 several times on May 25, around seven hours before the price increased 50% over the next day.

Other notable altcoin performances include an 89% gain for SKALE Network (SKL) and a 67% rally from Enjin Coin (ENJ) . Origin Protocol also gained 53%.

Daily cryptocurrency market performance. Source: Coin360

The overall cryptocurrency market cap now stands at $1.7 trillion and Bitcoin’s dominance rate is 42.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of bit-cointalk.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.