U.Today is about to experience a notable technical event that could significantly affect its movement in the future. This is a near-fatal crossover, where the 200-day exponential moving average (EMA) crosses below the 100-day EMA.
Because it represents a shift in momentum from bullish to bearish, this technical pattern, occurring around the $0.12 level, generally signals the possibility of an extended downtrend.
A bearish outlook for Dogecoin could be confirmed if the 100-day EMA crosses below the 200-day EMA and remains there. DOGE price would likely fall further as a result of this event, discouraging buyers and attracting sellers. While not all death crosses result in large losses, historically, they have frequently preceded extended periods of price declines.
There are three crucial levels in Dogecoin price that need to be monitored regularly: The immediate resistance level where the potential crossover could occur is $0.12. DOGE may find it difficult to regain bullish momentum if it fails to break above this level. Over the past few weeks, DOGE has found a floor at $0.105. If this level falls below it, it could signal further vulnerability and possibly lead to a retest of lower levels.
The path to $70,000
At the moment, Bitcoin is moving in a well-defined channel and a move towards $70,000 is looking increasingly likely. The 50-day and 100-day exponential moving averages (EMA) are two important resistance levels that BTC must overcome first for this bullish scenario to become a reality.
The 50 and 100 EMAs are important resistance levels that have historically been difficult for Bitcoin to break above, as the chart illustrates. Right now, these levels correspond with important price zones that traders are keeping a close eye on. Bitcoin could be able to test the upper boundary of the channel and move towards the $70,000 mark if it manages to decisively break above these EMAs, which would indicate strong bullish momentum.
Currently, there is enough room for significant price movement in the trading channel that Bitcoin is moving within. But unless the 50 and 100 EMAs are broken, Bitcoin price will likely remain range-bound, with resistance levels preventing any significant advance towards higher targets. Bitcoin would not only break above the current resistance but would pave the way for a potential rally to $70,000 if it were to successfully break these EMAs.
Needs another push
Ethereum appears to be following a pattern on its chart that is very similar to a bearish wedge. If this formation plays out as predicted, it could be problematic for Ethereum’s current bullish momentum. It is often considered a bearish reversal pattern. A bearish wedge with its converging support and resistance lines usually develops after an uptrend and is characterized by a contracting price range.
Inside the wedge, there is typically upward price action, but decreasing volume and a narrowing range frequently signal easing buying pressure. Over time, a breakout of this pattern could cause prices to fall sharply, reversing the previous uptrend. Ethereum’s recent gains could be in jeopardy as it trades inside this potential wedge.
Should the pattern hold, ETH could experience a steep decline and possibly return to previous support levels at $2,600 or even $2,500. Since the market has been generally bullish in the short term, this would indicate a significant shift in sentiment. Traders should keep an eye on ETH’s volume and price movement over the next three days.
The probability of a breakout increases if Ethereum remains within the wedge as volume falls. But if ETH can break above the upper resistance line of the wedge with significant volume, this bearish scenario could be avoided and the uptrend could continue.
This article was originally published on U.Today
