Nvidia stock recovers as Dogecoin, Jasmy, Render lead crypto’s rebound

Nvidia Stock's Recovery and Altcoin Surge

On Monday, August 5th, Nvidia stock rebounded, offering hope to investors amid a broader market decline. Despite the Dow Jones Industrial Average's plunge of over 1,000 points and record intraday drops in the S&P 500 and Nasdaq 100, Nvidia shares rallied, reclaiming the $100 level.

This recovery mirrored similar surges in prominent altcoins, including Dogecoin (DOGE), JasmyCoin (JASMY), and Render Token (RNDR). DOGE climbed over 16%, JASMY surged by 35%, and RNDR gained 25%. Bitcoin (BTC) and Ethereum (ETH) also pared back some losses.

However, the stability of these gains remains uncertain due to lingering market risks. The S&P 500 index's formation of a high-risk rising wedge pattern suggests further selloffs may occur.

Correlation between Tech Stocks and Cryptocurrencies

The correlation between technology stocks like Nvidia and cryptocurrencies became evident during the US morning trading session. Altcoins such as Render and Jasmy rose as investors took advantage of oversold conditions. Their daily chart RSI values fell to levels indicating oversold territory.

Potential Catalysts for NVDA and Altcoins

Despite the current volatility, several potential catalysts could drive Nvidia and cryptocurrencies higher. The looming US recession, as predicted by Goldman Sachs and the Sahm Rule, may prompt the Federal Reserve to intervene by cutting interest rates at its September meeting.

Historically, cryptocurrencies have performed well during periods of interest rate cuts. Additionally, solid earnings reports from S&P 500 companies, despite setbacks from Tesla and Intel, offer optimism.

Nvidia's next significant milestone is its financial results release on August 28th. Analysts anticipate a jump in revenue from $26 billion in Q1 to $28 billion.