Arman Shirinyan
Unfortunately, the cryptocurrency market lost its battle against the bears this time
Read U.TODAY on
Google News
The Shiba Inu has had a major meltdown since the last integration phase. The chart shows a clear downward trajectory as SHIB failed to maintain its position within the ascending triangle pattern it formed over the past few months.
The breakout was indicated when SHIB prices broke through the key support level at $0.000009, which served as a reliable floor for the price during the consolidation phases. After that, SHIB prices fell further, breaking the subsequent support near $0.0000087. This price action represents a decisive shift in market sentiment from accumulation to distribution.
The next support level to watch is $0.0000082, where SHIB may find temporary relief from selling pressure. If this level fails to hold, the next crucial support is at $0.0000076, which could serve as the last line of defense before a more significant decline.
For a reversal to occur and SHIB to regain its upward momentum, it would need to reclaim previous support levels and turn them back into support. This may require a significant influx of buying pressure, potentially triggered by positive developments within the Shiba Inu ecosystem or broader rallies in the cryptocurrency market.
The first sign of a potential reversal would be a return above $0.0000087, followed by a sustained move above the $0.000009 price level. A break above these levels, accompanied by increased trading volume, may indicate that the downtrend is losing steam and the bulls are regaining control.
Solana draws a reversal pattern
Solana has developed a subtle but potentially pivotal chart pattern. The asset is tracking a slow and steady upward channel, a formation that indicates a controlled and consistent uptrend. This pattern, characterized by higher lows and higher highs contained within two parallel trend lines, indicates the potential for continued growth.
The importance of this pattern lies in the momentum it can provide to SOL. If price action remains strong within the upper half of the channel, and especially if it challenges the upper trend line, we could see Solana break out and initiate a more aggressive rally.
Such a bullish scenario would likely be supported by increased trading volume and positive developments within the Solana ecosystem, such as the launch of new projects or updates that boost network performance.
Immediate local resistance stands at around $55, and a confident push beyond that could confirm bullish sentiment. Conversely, if Solana price drops below the channel minimum, around $48, it could indicate that a bearish narrative is starting to take hold.
Ethereum’s momentum is decreasing
Ethereum is showing signs of declining momentum, as observed in recent price action. The asset, long considered the backbone of the DeFi sector, is facing a pivotal moment that could determine its course in the coming weeks.
The provided chart shows Ethereum’s struggle to maintain its market control. The price has been in a downtrend, approaching the local 26-day EMA. This level, which is currently close to $2,465, is considered crucial; If Ethereum fails to maintain this line, we may see a decline to test the more important 50 EMA, which is located around the $2,300 mark.
The 26 EMA acts as a gauge of short-term sentiment, and a break above it may indicate a lack of immediate upside support. If this level fails to act as a starting point for a price recovery, the next stop for Ethereum could actually be the 50 EMA. A break below this longer-term EMA would likely open the doors to testing lower support levels, highlighting Investors need to prepare for more volatility.
Market participants are now recalibrating their expectations, realizing that the path to sustainable gains is a long-term journey.
About the author
Arman Shirinyan