Will This Shiba Inu (SHIB) Price Pattern Start to Reverse?
U.Today: Currently showing a price pattern that could lead to a reversal. The pattern, characterized by SHIB breaking below the 200-day exponential moving average, could be signaling an opportune time for investors and traders to consider dollar-cost averaging (DCA) in their positions.
The 200 day EMA is a critical long-term indicator that many investors look at to determine market trends. A break below this line can often suggest bearish sentiment. However, for the astute investor, this can also present an attractive entry point, especially for those seeking DCA or accumulating during dips in anticipation of future gains.
Despite the current gap, SHIB’s approach to this level has historically met with a strong reaction from buyers, sometimes resulting in a notable price reversal. If the pattern holds true to its historical behavior, SHIB price could soon find enough support to stop the decline and start an upward trajectory.
However, it is essential to recognize that SHIB has faced constant selling pressure, evident whenever attempts are made to drive the price up. This constant sell-off following attempts to rally has created a challenging environment for SHIB to maintain substantial gains.
The current market scenario is a delicate balancing act between bearish pressure and the possibility of a bullish reversal. For new investors looking to enter the market, the area just below the 200 EMA could prove to be a significant level, as long as they are comfortable with the inherent risks that come with such volatile assets. Older investors can use the price level to dollar-cost average their holdings.
loses steam
Solana (SOL), the blockchain platform known for its speed and efficiency, has recently experienced a significant crash, indicating a pause in the bullish momentum that had characterized its market behavior. After a prolonged uptrend, the correction has worsened into a steeper price drop, indicating a change in market sentiment.
The chart reveals that it has decisively broken out of its previous uptrend, characterized by higher highs and higher lows, and has entered a correction phase. The volume profile during this downturn suggests that selling pressure has intensified, leading to a drop below critical support levels. This pattern is often a precursor to further declines as market confidence declines.
For those looking for a scenario where Solana could rally, a relief rally could emerge from oversold conditions, indicated by the RSI approaching lower bounds. Such a rally would require a catalyst, possibly in the form of positive developments within the Solana ecosystem or broader changes in crypto market sentiment. A rebound scenario could also be supported by traders looking for value buying at lower prices, thus creating enough buying pressure to counter the recent downtrend.
has substantial support
It has recently found a significant level of support, touching the 50-day exponential moving average, a critical indicator for determining local trends.
Historically, the 50-day EMA has been a stronghold for Ethereum price, acting as a pivot point between bullish and bearish territories. After a period of decline, Ethereum’s approach to this level suggests we may be on the cusp of a reversal. This is particularly compelling given Ethereum’s past performance, where touches of the 50 EMA have often led to a resurgence in buying activity, driving the price higher.
Currently, the intersection with the 50 EMA is aligned with descending trading volume, indicating a possible decrease in selling pressure. This trend could signify market consolidation before a bullish reversal, as lower volume along with support touchpoints often precedes a change in momentum.
The implications of this volume decline are twofold. Firstly, it may suggest that the recent sell-off is losing steam and the market is running out of sellers at current price levels. Secondly, it may imply that the market is waiting for new catalysts or developments within the Ethereum ecosystem, such as updates on Ethereum 2.0 or broader crypto market trends, before initiating the next significant move.
This article was originally published on U.Today.
