U.Today – A major price test is approaching that could reveal the market direction in the near future. BTC is approaching the 200-day EMA, a crucial technical level that frequently acts as a barrier between bullish and bearish market sentiment, as can be seen in the chart provided.
The cryptocurrency may gain bullish momentum if Bitcoin manages to break through this barrier, which could signal the beginning of a new uptrend. This next test is crucial for traders and investors alike because the 200-day EMA has historically been an important point of resistance and support.
BTC could retrace to previous price levels, which would support the current downtrend if it fails to break above it. On the other hand, if Bitcoin breaks above the 200-day EMA, it would indicate that the market is strong and interest in the asset may increase. Keep an eye on the following critical price levels: the psychological barrier and the previous resistance level, approximately $60,000.
The next important level where Bitcoin recently found support is $58,300. In conclusion, if Bitcoin fails to break above the 200-day EMA and reverse the downtrend, traders should consider $54,500 as a lower support level. This level has the potential to become critical. The 200-day EMA will be a crucial level for both bulls and bears during this impending test, which may pave the way for Bitcoin’s next major move. Keep an eye on these levels as the price action of the next few days will likely dictate whether Bitcoin continues to rise or experiences further selling pressure.
The test of
By breaking above its 26-day exponential moving average (EMA), an essential signal for abrupt shifts in momentum, Dogecoin has finally shown signs of life. Dogecoin may be on the verge of a bullish recovery after weeks of suffering below important resistance levels, as the 26-day EMA is frequently considered a critical signal for trend reversals.
The fact that the price has broken above the 26 EMA is noteworthy because it shows that DOGE is finally gaining momentum and breaking out of a consolidation phase. This technical development may herald a further bullish move soon. But before Dogecoin confirms a broader trend reversal, it is crucial to note that it still has significant resistance levels to overcome.
The next major resistance zone is currently located around the $0.11 mark, close to the 50 EMA. The rally can strengthen if DOGE manages to cross this level, with a potential target of the 200 and 100 EMAs, which are located at $0.12 and $0.14, respectively.
If Dogecoin wants to establish a long-term uptrend, it is imperative that it breaks above these long-term moving averages. The recent lows have held near the $0.09 level, which serves as critical support on the downside. In case this support level is broken, the bullish momentum may be invalidated and additional downside risks may be indicated.
Although Dogecoin still has some work to do, the move above the 26 EMA is generally a positive indication. To verify a broader reversal, the bulls need to continue applying pressure and push DOGE above the upcoming resistance zones.
Recovery finally begins
As it approaches $150, Solana is starting to show signs of recovery. The 26-day exponential moving average, a significant level that typically signals short-term momentum shifts, is the level at which the asset is currently trading.
Solana’s ability to continue higher or encounter a breakdown will largely depend on the price action in the coming days. Solana could attempt to test higher resistance levels in the $140-$150 range if it manages to break above the 26 EMA and start another bullish push.
A longer-term rally targeting the 50 EMA at $147 and the 100 EMA, which is slightly below $160, could be triggered by a persistent move above this zone. This would signify a solid recovery and encourage more bullish thinking in the market. However, there is a chance that Solana could falter at the 26 EMA and break down instead.
Sellers could force a pullback towards SOL’s recent support at $125–$130 if they manage to reject the price at this point. Failure to hold these levels could lead to a larger decline, with $115 serving as the next major support. Additionally, the relative strength index, or RSI, is showing a neutral zone, indicating that there is still room for either scenario to occur and that the market is neither overbought nor oversold yet. Volume has remained relatively low, so the next move will likely be determined by a large increase in buying or selling pressure.
This article was originally published on U.Today
