Sui and Solana were the breakout stars of April. Can they sustain this momentum and how will the FED meeting and Powell speech affect the altcoin season?
In April and May, SUI and Solana broke out of bearish patterns and turned bullish. SUI, for example, broke out of a bull flag pattern and broke into a massive price rally that saw its price rally by more than 60% in April.
The Solana price chart is also eerily similar to that of SUI. It, too, has broken out of a bullish flag pattern that was marked by an extended downturn that was followed by an equally extended consolidation phase. During the month of April, its prices rallied by close to 50%.
In the first week of May, several macro developments are expected to have a significant impact on the trajectory of the altcoin season. These include:
FOMC Meeting and Powell Speech
The FOMC May will conclude on Wednesday, May 14, after which FED Chair Jerome Powell will issue a press statement. Throughout the year, analysts were convinced that the FED would start making good on the promise to cut rates this year in June.
However, recent stronger-than-expected unemployment data has thrown a spanner in the works and threatens to push back the rate cut date.
The news is slightly bearish and will probably serve to extend the current consolidation phase of the top coins like Sui and SOL, a move that could further delay the altcoin.
Services Sector Health
The ISM Services PMI report for April will also be released this week. This monthly report plays a vital role in helping investors understand the general trajectory of the US economy, based on the performance of the services industry.
At the time of writing, the forecast is that it will perform below expectations, falling by at least 0.6%. This news, coupled with the fact that Bitcoin ETF inflows will be posting a positive report for the third week in a row will possibly spur a short-term crypto rally for most altcoins.
Bottom Line
With SUI and Solana leading April’s gains, all eyes are now on the Fed’s tone and macro data to determine whether the altcoin rally continues or stalls. If Powell maintains a hawkish stance, consolidation may persist.
However, soft economic data and rising ETF inflows could reignite bullish momentum across the altcoin market.
Best Crypto Exchange for Intermediate Traders and Investors
Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
Copy top-performing traders in real time, automatically.
eToro USA is registered with FINRA for securities trading.
30+ million
Users worldwide
Our latest crypto alerts – instantly accessible
This is how we are guiding our premium members (log in required):
- Bitcoin’s Must-Watch Chart Structure, What It Means For Top Altcoins (May 6th)
- Charts – XRP, Theta, Uniswap, and two RWA Token Tips (April 29th)
- Juicy Opportunities Are Starting To Show Up On The Charts (April 24th)
- BTC Stronger Than Markets + 3 Key Narratives Emerging (April 20th)
- BTC: From Failed Breakdown To Breakout Attempt On April 13th (April 13th)
- BTC Hanging On A Cliff As Markets Are Retaliating (April 7th)
