U.Today – is currently showing a descending triangle pattern on its trading chart, a development that could redefine its market behavior in the coming weeks. This pattern is significant as it typically indicates a possible continuation or reversal, and for SHIB, the stakes are high.
The descending triangle has been forming in recent months, characterized by lower highs and a flat support line. This pattern suggests that each rally faces strong selling pressure, which progressively pushes the price lower. Currently, SHIB is hovering around the $0.0000237 mark, with immediate support at $0.000021.
SHIB/USDT chart by TradingView If this support level fails, SHIB could see a further decline towards $0.00002, a critical psychological and technical barrier. The outcome at this juncture could lead to two different scenarios: a rebuttal, in which buyers intervene strongly, driving the price up again, potentially retesting higher resistance levels; or a breakout, where the price could fall below the $0.00002 mark, causing a bearish decline for the token.
A break below the triangle could significantly undermine sentiment and lead to a possible sell-off. On the contrary, a strong rebuttal and recovery of the support line could reignite interest and potentially start a new bullish cycle for SHIB.
Volume trends and market sentiment will play a key role in determining the outcome. Recent trading volumes have been relatively low, often indicating a lack of conviction among traders.
tests
The $58,000 mark is significant as it has previously acted as a solid support level for Bitcoin. Observers note that the price is also close to the 100-day EMA, around $60,000, which adds an additional layer of psychological and technical importance. These EMAs are instrumental in defining medium and long-term market trends and sentiment, and their current levels suggest a bearish outlook for the cryptocurrency.
Remove ads
.
Volume analysis shows somewhat neutral to declining volume, which does not currently indicate strong potential for a bullish reversal. Typically, a bullish reversal is accompanied by a significant increase in volume, indicating strong buying interest that could drive the price higher. The absence of such volume dynamics suggests that the market may not yet be ready to push the price back above the $60,000 mark.
Furthermore, Bitcoin's failure to break above the 26 EMA and 50 EMA has reinforced the bearish sentiment among traders. These failures are critical as they typically indicate where the market could be headed in the short term.
the neutral position
Currently, ADA is hovering around the mid-April support level, which it has tested several times without making a decisive breakthrough. This support level has proven to be resilient, suggesting that it could serve as a solid foundation for a possible rebound higher.
However, during its latest rally to the local resistance of $0.51, ADA failed to break through and faced a slowdown influenced by a bearish crossover between the 50-day and 100-day exponential moving averages. Such a crossover is usually interpreted as a sign of an acceleration of negative trends in the market.
Cardano price action has been somewhat subdued following this bearish indicator, with no significant signs of a bullish reversal in the immediate term. The most likely scenario for ADA, given the current market conditions and technical setup, is the continuation of the sideways trend. This would imply that the price would oscillate between known support and resistance levels without significant directional momentum.
Remove ads
.
This article was originally published on U.Today.
