Macro Overview
- US Unemployment Claims: Neutral to Slightly Bearish for Crypto Market: US unemployment claims came in at 215k, slightly lower than the expected 220k. This result is neutral to slightly bearish for the crypto market due to the historical negative correlation between employment data and crypto performance.
- FOMC Meeting Minutes: Mixed Signals for Economic Policy: Federal Reserve officials expressed concern over the “disappointing” inflation in the first quarter and are considering keeping interest rates constant for longer if inflation does not decrease. While officials acknowledge that monetary policy remains restrictive, there is uncertainty about the extent of its impact. Some officials suggest that long-term rates may need to be higher than previously anticipated, and there is a worry that current financial conditions might not be restrictive enough.
Top Tokens Update
- Crypto AI Tokens Decline Despite Nvidia’s Positive Earnings Report: Despite Nvidia’s earnings report surpassing expectations, crypto AI tokens experienced a drop in price instead of surging as anticipated. The positive price action leading up to the announcement did not translate into gains for these tokens.
- Fantom Foundation Establishes Sonic Foundation and Labs for New Sonic Chain: Fantom Foundation announced the formation of the Sonic Foundation and Sonic Labs to support Sonic, a new layer-1 blockchain with a layer-2 bridge to Ethereum. Additionally, Fantom closed a $10 million funding round led by Hashed to bolster Sonic’s ecosystem and development.
- DWF Labs Acquires 25M $GALA Tokens to Aid Gala Games After Security Breach: DWF Labs, a Web3 investment and market-making platform, has acquired 25 million $GALA tokens to support Gala Games following a security breach. Gala Games faced a significant breach resulting in substantial damages, but efforts to mitigate losses led to stabilization. DWF Labs’ investment aims to further stabilize the native $GALA token.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| May 30 | 6:00 PM | US Prelim GDP q/q | Actual’ less than ‘Forecast’ is good for crypto |
| May 30 | 6:00 PM | US Unemployment Claims | Actual’ greater than ‘Forecast’ is good for crypto |
| May 31 | 6:00 PM | US Core PCE Price Index m/m | Actual’ less than ‘Forecast’ is good for crypto |
Note: “Events in red font signify severe impact, while those in yellow indicate moderate.”
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is neutral.
- This week, BTC showed a neutral to positive performance. The reduction in BTC dominance was notable due to the ETH ETF approval. BTC’s price action slowed down as the ETH/BTC pair bounced. Currently, the price action is mixed, but in the broader time frame, it remains bullish as long as it maintains to clear the range high. For the next week, it’s expected to move within a range.
- Key support levels to consider are around $64600, $61,000 ,$59,000 and $57,000. On the upside, resistance levels is at $68,600 , $71,250, & $73,500.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears neutral.
- This week, ETH has posted its highest return (weekly), mainly due to the ETH ETF approval. However, post-announcement, the price action has been choppy, and it’s expected to remain sideways in the upcoming week. Despite the short-term uncertainty, the ETH ETF approval is bullish for ETH in the long term. To signal a strong upswing, ETH needs to clear the key level of $4000.
- Significant support levels include $3480 and $3246, while resistance levels to watch are at $3845, $3950 and $4080.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
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