Once again, cryptos are on the move, this time benefiting from a convergence of tailwinds. However, investors will need to exercise vigilance as not all virtual currencies have experienced the same benefits.

First, the benchmark cryptocurrency appeared to pop higher in part due to a technical dynamic. As I’ll explain later, the digital asset appears to be in the middle of forming a bullish pennant formation. Second, the blockchain ecosystem has witnessed liquidations of open short positions. This dynamic suggests that a short squeeze forced bearish traders to close out their positions.

Finally, some rumblings exist that multiple China-based financial firms have submitted applications for their own spot crypto exchange-traded funds. These applications are apparently awaiting regulatory approval. If the green light is issued, international demand for cryptos could flourish.

It’s a tricky time to be sure since not all blockchain assets have printed the same compelling charts as the benchmark coin. Still, it’s an exciting time to be involved in decentralized financial circles. With that, below are key cryptos to watch.

Bitcoin (BTC-USD)

Let’s just get right into it. From a near-term perspective, it’s more than possible that Bitcoin (BTC-USD) could see a significant pop higher. That’s because BTC appears to be charting what I said earlier, a bullish pennant formation. Essentially, this pattern represents behavioral consolidation, where the upper-end and lower-end price action converges at a focal point. At this apex, the asset could either break out or break down.

I’m going to be blunt. One of my main concerns heading into the current juncture was Bitcoin’s halving event. Fundamentally, the narrative seems compelling for the bulls: the difficulty of mining BTC rises significantly, translating to reduced supply amid rising demand. This combination should yield explosive growth. At the same time, it’s also a known catalyst. Therefore, one must respect the old adage: buy the rumor, sell the news.

However, Bitcoin’s charting of the bullish pennant forces me to respect the data. Not only that, the volume “softened” in the formation of the pennant, which is what you actually want to see. So, don’t be surprised to see BTC jump higher.

Ethereum (ETH-USD)

While optimists may be justified in celebrating Bitcoin’s potential swing higher, Ethereum (ETH-USD) presents a trickier narrative. The basic shape of the pennant formation is there – well, kinda, sorta. It’s an ugly looking chart, though, which gives me pause. Will ETH tag along with BTC as it usually does? Or will the benchmark asset leave other cryptos in its dust?

Unlike the formation that Bitcoin printed, Ethereum’s (possible) pennant lacks symmetry. Granted, symmetry is subjective when it comes to the discipline of technical analysis. But the two charts are distinctly different, warranting some caution. If I had to buy this rally, I would lean more into BTC and ETH.

Why? Currently, the fundamentals support Bitcoin. It’s the one poised to incur the halving event. As well, the aforementioned Chinese investors are looking to create Bitcoin ETFs. It’s not clear if they’re interested in the altcoins or alternative (non-BTC) cryptos.

One wrinkle to note: Ethereum’s volume softened during the formation of its strange-looking bullish pennant. That’s something to add to your calculations.

Tether (USDT-USD)

In the trailing 24 hours since early morning Tuesday, Tether (USDT-USD) dipped just below parity with the dollar. Ordinarily, the loss of the perfect one-to-one ratio with the greenback isn’t a surprise; indeed, the ratio fluctuates constantly. However, during the past 24 hours, Bitcoin gained almost 3%. Ethereum gained more than 8%. So, cryptos should be more valuable than paper currency at this juncture.

However, throughout much of the Monday session, Tether has been surprisingly muted. With Bitcoin crossing over the $71,000 threshold, it’s obvious that bullish sentiment has returned. Now, the question is whether or not the sentiment will sustain itself. Here, the loss of parity is what makes me a little suspicious.

Don’t get me wrong – I’m not suggesting that the apparent contradiction will yield a crash in the virtual currency complex. However, it’s also possible that the consolidation cycle of the previously mentioned bullish pennant formation could take a bit longer. Either way, I’d watch this space before making major moves.

BNB (BNB-USD)

After a hard-fought battle, BNB (BNB-USD) has again moved into the fourth-place spot in terms of market capitalization. Of course, cryptos represent a wildly volatile space. So, while BNB has opened about a 10% market cap gap from the fifth-place asset, the lead isn’t a safe one. BNB could have a bad day and/or the fifth-placed blockchain token could have a strong one.

Now, what makes BNB a compelling crypto is that it’s also printing a bullish pennant formation. The chart isn’t as aesthetically pleasing as Bitcoin’s, particularly because the most recent sessions lack “firmness.” As evidence, BNB slipped slightly under parity over the past 24 hours. That stands in sharp contrast to the performance stats that Bitcoin and Ethereum have yielded.

Still, I do like the softening of volume as the meat of the pennant formation was being built in the charts. That’s a possible signal that at the apex point, BNB could fly higher. Still, I think a word of caution is warranted.

Between Bitcoin and BNB, I’d weigh the former blockchain asset more heavily. Again, it’s the one in the middle of the fundamental spotlight.

Solana (SOL-USD)

While Solana (SOL-USD) had occupied the fourth-place market cap position for several weeks, it couldn’t hold on. Still, it’s within shooting distance of BNB, which features a current value of around $87.1 billion. Solana is sitting pretty at $79.3 billion. What’s more, the gap between Solana and the next most valuable digital asset is over 130%.

Remember what I said earlier about not all cryptos enjoying the same benefit as Bitcoin? That’s the case with Solana. Yes, from a longer-term perspective, SOL has been killing it, especially since the “Uptober” seasonality cycle. However, in the past 24 hours, SOL gained a bit more than half-a-percent. More worrying is the trailing-week performance, down 3%.

Subsequently, Solana has been trading hands below its 20-day exponential moving average. Further, volume has declined since roughly the middle of March. It’s difficult to say if this volume softening is a positive development because it’s hard to characterize SOL’s chart pattern as a bullish pennant.

Yeah, it’s kinda like comparing notes on a Rorschach test. Still, I think caution is necessary for SOL at this juncture.

XRP (XRP-USD)

As if cryptos needed to be any more confusing, we come to XRP (XRP-USD). In recent sessions, XRP represented one of the more frustrating digital assets. Previously, from the summer of 2022 to late 2023, XRP printed a series of rising lows. However, this pattern suffered a conspicuous blemish earlier this year. Fortunately for stakeholders, the bulls came in to rescue the chart.

Still, the rescue over choppy waters hasn’t been an easy one, leading to wild undulations. A few sessions ago, XRP tested the support line symbolized by its 200-day moving average. It was a nervy moment but the optimists held on. Currently, XRP trades hands at nearly 62 cents, above its 50 DMA at 61 cents.

Still, I wouldn’t say with authority that XRP is out of the woods. One of the problems is that XRP’s February low sparked what appears to be a broadening wedge. Long story short, I need XRP at minimum to trade alongside a horizontal consolidation range to break the wedge’s negative implication. Of course, a big move higher would be better.

For now, investors need to watch this space carefully.

Cardano (ADA-USD)

If you thought that reading the implications of cryptos at this juncture was confusing, check out Cardano (ADA-USD). I’m not here to bash it. Fundamentally, I recognize that it’s one of the most popular altcoins. It has enjoyed this status for years, longer than most virtual currencies have existed. Still, let’s be real – this is one ugly chart.

Since fading from its highs last month, Cardano’s 20-day exponential moving average has effectively imposed upside resistance, first near the 66-cent level then near 61 cents, which is roughly where ADA presently resides. During the cycle of falling prices, volume also faded. However, this seemingly bearish dynamic could actually have bullish implications.

Still, it’s a darn risky assumption. Again, that’s mainly because Cardano is not the one receiving the halving benefit. Also, you can potentially make the case that between February to the current juncture, ADA has printed a head-and-shoulders pattern. This generally has bearish implications.

Overall, investors need to be careful.

On the date of publication, Josh Enomoto held a LONG position in BTC, ETH, USDT and XRP. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.