Is Crypto Market Back on Recovery Track? Top 3 Cryptocurrencies To Invest In May 2023

The crypto market witnessed a sudden uptick as the First Republic Bank is rumored to collapse, accentuating the US banking crisis. This buying pressure encourages a majority of major cryptocurrencies to undermine the mid-April sell-off and recuperate the bullish recovery. Amid the potential recovery, here are the top three Cryptocurrencies showcasing a bullish setup for a significant rally.

Xrp(XRP)

Source- Tradingview

In the weekly time frame chart, the XRP price shows the formation of a double bottom pattern. In theory, this pattern resembles strong accumulation from buyers as the price rebounds from the same support zone.

However, amid the recent correction phase, the XRP price recently reverted from the $0.55 neckline and plunged 20% down to retest local support of $0.45. Anyhow, the retracement managed to sustain above the 50% Fibonacci retracement level indicating the overall bullish sentiment remains intact.

By the press time, the XRP price reversal from 50% FIB at $0.44 encouraged buyers to a 14% rise and rechallenged the $0.55 barrier. Furthermore, a potential breakout from the neckline resistance will intensify the bullish momentum and surge the price 47% higher to hit the $0.8 high.

Avalanche(AVAX)

Source- Tradingview

In the weekly time frame chart, the Avalanche coin price is currently forming an inverted head and shoulder. This famous trend reversal pattern offers a suitable buying opportunity once the price breaks the pattern’s resistance neckline.

Amid the ongoing uncertainty in the market, the AVAX price is stuck in the right shoulder part of the pattern as mentioned above chart. If the coin price manages to sustain above the $14 support, the AVAX will rise 22% and challenge the neckline resistance. 

Under favorable conditions, a potential breakout above the $21.7 neckline will surge the AVAX price 42% higher to the $31 mark.

Chainlink(LINK)

Source- Tradingview 

The market participants interested in buying Chainlink price should mark the $5.5 and $9.5 levels. For nearly a year, the coin price has strictly resonated between these levels forming a definite sideways trend.

By the press time, the Chainlink price trades at the $7.2 mark and tries to sustain above local support of $6.8-$6.6. If the broader market sentiment turns negative, the breakdown below the aforementioned support will tumble the LINK price back to the $5.5 accumulation zone.

On a contrary note, the less aggressive traders can wait for a breakout above the $9.5 barrier to confirm a bullish trend.