U.Today – As the price falls below the 200-day EMA, which has long been a crucial support level for the asset, the market is currently entering a bearish phase. As seen in the provided chart, the current trend indicates that BTC is moving within a clearly defined descending price channel.
This channel shows a steady downtrend with increasingly lower highs and lower lows, indicating that there will likely be pressure on Bitcoin for some time. The black line, which represents the 200-day EMA breaking below it, is a critical signal of declining momentum. Bitcoin’s price has historically fallen further when it reaches this mark.
The inability to sustain above this level contributes to the overall bearish sentiment of the market. The clearly visible descending price channel indicates that Bitcoin will likely continue to trend lower until it finds a solid support level within this range. According to the chart, the lower border of the descending channel, or around $53,000, appears to be the next significant support level.
This level could serve as a stopgap for Bitcoin price, but if broken, it could fall further and test the psychological barrier of $50,000. Moreover, the decrease in volume that has accompanied the price drop indicates a lack of significant buying interest, which may make it difficult for Bitcoin to resist the current downtrend.
he loses it
With the asset currently trading below the critical $0.1 mark and adding another zero to its price, Dogecoin is struggling and in an extended downtrend. For DOGE investors, this represents a major psychological barrier and the asset’s inability to maintain any momentum suggests there are deeper issues with the market.
Due to the current market conditions, Dogecoin is becoming increasingly vulnerable, as evidenced by its price action. The chart below shows that Dogecoin has been steadily falling for several months, failing to break above the important resistance levels that its moving averages have established. The long-term bearish outlook is indicated by the 200-day EMA, which is well above the current price level.
Furthermore, the bearish outlook is supported by the continued downtrends of the 50-day and 100-day EMAs. The volume profile reinforces an even more discouraging outlook. The unusually low trading volume indicates that there is not much interest in buying Dogecoin. With little buying pressure to offset the selling, the low volume suggests that the downtrend may continue for longer.
As there are no buyers, Dogecoin is vulnerable to further declines, and the next potential support levels are around $0.08 or even below. Moreover, the relative strength index, or RSI, is holding near the lower end and showing weakened momentum, although it is not yet indicating an oversold situation. This implies that before a notable reversal can be anticipated, there could still be more scope for a downward move.
Recovery objectives
Solana appears to be positioning itself for a potential rally as its price reaches a critical support level. Historically, this price range has proven to be a solid foundation for a recovery in Solana’s value, and current technical indicators suggest that a similar move could be on the horizon.
Looking at the provided chart, SOL is trading just above $130, an area that has served as a turning point for several price reversals in the past. The price recently dipped below its 50-day and 200-day EMAs, indicating a bearish phase, but the current volume profile suggests that selling pressure is starting to ease. This could create an opportunity for buyers to step in, pushing the price higher in the near term.
Moreover, the RSI (relative strength index) is showing signs of being close to oversold territory, hovering around 42. This could indicate that SOL is approaching a point where sellers have exhausted its momentum, which could make it ripe for a bounce. A reversal from these levels could easily push Solana towards the 50-day EMA, which is currently located around $145.
However, it is important to note that overall market conditions remain a bit uncertain. While Solana has a history of recovering at these price levels, the lack of significant volume over the past few days could pose a challenge. For a sustainable recovery, we need to see an increase in buying interest accompanied by higher trading volumes, especially as the price approaches key resistance levels around $140 to $145.
This article was originally published on U.Today
