Optimism toward a meme coin has increased as a result of Shiba Inu’s recent recovery above the 100 EMA at $0.0000230. But this rebound is still not enough to verify a legitimate trend reversal. Though it is a positive move, regaining the 100 EMA is insufficient to change the bearish sentiment that has dominated SHIB for weeks. A major problem hindering SHIB’s recovery is the declining volume of trading.
The lack of substantial buying interest suggests low trader conviction, even though the price is rising. Often, this price-volume discrepancy indicates a brittle rally that might find it difficult to maintain over time. Breaking above the 200 EMA, which is currently acting as a critical resistance near $0.0000250, is necessary for SHIB to establish a significant trend change.
The asset may move toward the $0.0000300 range, a psychological barrier if it closes above this level, indicating stronger bullish momentum. If SHIB is unable to hold its position above the 100 EMA, it may retest support at $0.0000205. Bulls’ last line of defense would be the 200 EMA below.
Rekindling bearish pressure and invalidating the recovery attempt could occur if there is a breakdown below these levels. Although SHIB’s recent downward trend has been stopped by the recovery, it is still far too early to call for a complete reversal.
At this moment, SHIB is at a turning point, and its future actions will probably determine the token’s short-term outlook. If volume stays low, traders should brace for another pullback or wait for a break above $0.0000250 to confirm bullish strength.
Solana breaks through
With 13% of its value recovered in the last few trading sessions, Solana has made a significant comeback. There have been indications of seller resistance, though, and the recovery has been cautious. Significant selling pressure is reflected in the large upper shadow on recent candlestick patterns, which suggests difficulties for bulls trying to maintain upward momentum.
SOL is currently trading close to $196 and getting closer to the 200 EMA, a crucial resistance level. If this level is successfully broken, it may pave the way for a push toward $210, where more resistance is located. Failure to break above these levels, however, could lead to a retracement. Bulls have a safety net at $175, which is also the level that corresponds with the 100 EMA.
The candlestick shadow, which shows the increase in selling pressure, indicates market hesitancy. This might be the result of short-term traders taking profits or a general lack of faith in a long-term rally. The chart’s visible descending channel increases the degree of uncertainty because SOL must confirm a trend reversal with a clear breakout above the upper trendline.
The volume is still moderate, but a stronger recovery might be fueled by more buying interest. The short-term price movement of Solana depends on its capacity to break above the $200-$210 range. A break above this level might signal the start of a longer recovery that could lead to $230.
Ethereum recovers
Since Ethereum recovered from crucial support levels close to $3,200, its recent price movement has drawn attention. This recovery coincides with Ethereum regaining its 50 EMA, a crucial technical indicator that is frequently interpreted as a pivot in momentum. The possibility of a push toward the crucial psychological resistance of $4,000 has increased as a result of a breakout above this level.
Ethereum saw a gradual drop before bouncing back, testing its strength in the resilient $3,200 range. If ETH can sustain momentum, a recovery from this level would point to the possible emergence of a new bullish trend. With Ethereum aiming for $4,000 as its next major obstacle, a breakout above $3,500 might serve as the next confirmation.
In order to continue this rally, Ethereum needs to first hold its position above the 50 EMA and consolidate above $3,500. This would suggest that market participants have regained their confidence and buying interest. A run toward $4,000 becomes feasible if these circumstances are satisfied, with additional resistance located close to $4,200. Still, there are dangers.
If the 50 EMA is not maintained, there may be a retracement back toward $3,300 or even $3,050. The bullish breakout of Ethereum would be delayed by such a move, which might also indicate prolonged consolidation. Ethereum’s ability to break through important levels with robust volume support will determine much of its short-term course. As the asset moves back into bullish territory, the continuous recovery indicates that investors are keeping a close eye on it.
Ethereum could spark renewed market optimism and pave the way for new highs, if it can break $4,000. The speed of Ethereum’s next big move will be determined by the immediate support at $3,300 and the resistance at $3,500, so traders should watch these levels in the interim. The outlook is currently cautiously optimistic.
Read the full article here
