- Partnerships and network improvements act as major driving factors.
- Most altcoins may remain volatile in the short-term due to the Fed’s decision, warranting caution amongst investors.
Large-cap cryptocurrencies continued to rise as investors responded positively to the comments from the Federal Open Markets Committee (FOMC) meeting regarding the 50-basis interest rate hike.
As such, there were a few star altcoins in the market that managed to post double-digit gains on May 5, thanks to partnership announcements, cross-protocol collaborations, and network improvements.
Zilliqa (ZIL) led the gains among the top 100 cryptos, recording an impressive 33% rise over the past 24 hours. WAVES and Axie Infinity (AXS) rose by 28% and 14% respectively, over the same period.
Top Gainers May 5
Zilliqa Price Analysis
The decentralized apps (dApps) network sealed multiple partnerships in April, which appear to be fuelling the ongoing rally. Zilliqa’s partnerships include joining the Blockchain Gaming Alliance (BGA) and getting ZIL listed on Binance, BitGet, and BitPanda. Additionally, Zilliqa is also working with Atomic Wallet to get ZRC-6 compatibility so users can see NFTs on their wallets.
ZIL was trading at $0.0896 at the time of writing and appeared to be fighting resistance from the 50-day Simple Moving Average (SMA) at $0.101. A daily candlestick close above this level would pave the way for a 46% ascent to $0.132.
ZIL/USD Daily Chart
The Relative Strength Index (RSI) had begun facing down, suggesting a lack of strength amongst buyers. The sellers will now try to pull the price back below the $0.084 level and later to the 200-day and 100-day SMAs at $0.0766 and $0.0729 respectively. Further down, the altcoin could drop below the upper technical formation at $0.0688 and back into the descending channel.
WAVES Price Analysis
WAVES, the native token of the multi-purpose blockchain Waves, had a difficult month in April after its algorithmically-balanced stablecoin, Neutrino, ran into technical issues. The asset staged a 40% rally between May 4 and 5 following the developers’ announcement about the changes on Neutrino. In a statement, they said that all Waves generated by Neutrino Community Node 1 would be moved to the Neutrino smart contract. As a result, the decision would affect the staking rewards of the ecosystem but boost its stability.
At the time of writing, the crypto was trading above a significant demand zone, stretching from $8.1 to $12.20. Bulls will now try to push the price above the $20 level, where the 100-day and the 200-day SMAs appeared to converge, before confronting resistance from the 50-day SMA, which sat at $26.9.
Clearing these hurdles would see the token rise to tag the $31 support-turned-resistance. This would represent a 92% climb from the current level.
This positive outlook was supported by the up-facing RSI and once it crosses the 56-level, it would signal that buyers have taken over control. The bullish cross of the 100-day SMA rising above the 200-day SMA added credence to the bullish narrative
WAVES/USD Daily Chart
Alternatively, a slide below the $11.82 level could see WAVES slide below into the demand zone. Expect the buyers to regroup within this level before staging a comeback.
AXS Price Analysis
Axie Infinity is a decentralized network for trading and gaming powered by blockchain technology. Its governance token AXS was up 14% over the past 24 hours after introducing land staking rewards, while crypto lender BlockFi also added support for the token.
The crypto lender said in a blog post that non-U.S. users will now be able to trade and earn interest on AXS and 13 other popular tokens. The move was effective from May 4. At the time of writing, the play-to-earn token had escaped from a descending parallel channel, signaling the start of an uptrend.
Increased demand could see the price rise toward the 50-day SMA at $50.
AXS/USD Daily Chart
On the downside, the RSI was positioned in the negative region suggesting that sellers still had the upper hand. As such, a break below $32.92 could see AXS drop first toward the middle boundary at $26 and later the lower boundary of the channel around $18.5.
