Following Bitcoin’s breakout above the Ichimoku cloud in late April, which triggered a rally towards the $100,000 mark, several top altcoins have now followed Bitcoin’s bullish lead. Memecoin DOGE, XRP, Ethereum’s ether (ETH), and Solana (SOL) have all surged past their own Ichimoku clouds, signaling potential for further growth.
Two weeks ago, I pointed out Bitcoin’s breakout above the Ichimoku cloud, which suggested a surge to the $100,000 range. With Bitcoin now comfortably in six-figure territory, other major altcoins are showing similar bullish signs.
The Ichimoku cloud, created by a Japanese journalist in the 1960s, is a comprehensive tool used to identify support and resistance, momentum, and trend reversals. It consists of five elements: Leading Span A, Leading Span B, the Conversion Line (Tenkan-Sen), the Base Line (Kijun-Sen), and the lagging closing price line. The cloud itself is formed by the gap between Leading Span A and B, and crossovers above or below this cloud often signal shifts in market momentum.
The charts indicate that both XRP and DOGE have moved above their respective Ichimoku clouds, suggesting further upside. For XRP, the next area of resistance is around $0.30, marked by a trendline that dates back to February highs. DOGE, on the other hand, is nearing its bear market trendline, and a break above this level could lead to resistance at $3.02, the lower high from March.
Ethereum has also shown strong upward momentum, breaking above its cloud, with a potential target at the 200-day simple moving average (SMA) of $2,700. Solana, however, may face resistance near $218, which corresponds to the 61.8% Fibonacci retracement level from the sell-off that took place between January and April.
With Bitcoin’s rally continuing, these altcoins appear to be on the cusp of their own price surges, and if the momentum holds, we could be witnessing a broad altcoin rally in the near future.
