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Contents
- Shiba Inu fights
- Dogecoin’s surprising rally
After an uptrend, BTC’s momentum stalled around the $38,000 resistance level, a critical point where selling pressure came together. Price action suggests a short-term retracement is imminent, with a possible fall back to the $35,000 support zone, according to recent analysis.
The daily chart shows a consolidation phase where the price faced rejection at $38,000, resulting in muted volatility and price action within a range of $35,000 to $38,000. This consolidation, along with an extended bearish divergence between price and the Relative Strength Index (RSI), suggests that bullish momentum may be weakening, leading to a correction.
An ascending wedge pattern can be seen on the four-hour chart, which is typically viewed as a bearish reversal signal. At the same time, a head and shoulders pattern is formed, approaching the completion of the right shoulder.
This pattern is a crucial indicator of a possible bearish reversal and will become valid if the price falls below the pattern’s neck line, potentially leading to a price decline below the wedge pattern, with key support at the $32,300 level marked by the 0.5 Fibonacci retracement.
On-chain analysis adds another layer to the narrative. The movement of Bitcoin from miner wallets to exchanges usually means an increase in market liquidity and selling pressure. However, this activity has declined to levels not seen since 2017, which could indicate that miners are holding on to their coins, a sign that could be interpreted as bullish sentiment.
Shiba Inu fights
Shiba Inu (SHIB) is navigating a challenging market landscape and struggling for momentum amid a maze of consolidation patterns. SHIB’s recent price action on the Binance chart highlights a period of compression where the token is caught in a tug-of-war between bears and bulls, resulting in a narrowing of the price range.
The chart shows a symmetrical triangle pattern characterized by two converging trendlines as the price fluctuates up and down within a narrowing range. This pattern often indicates a continuation or a reversal, with the direction of the breakout providing insight into future price trends. As SHIB approaches the top of the triangle, the possibility of a breakout looms, with traders watching closely to see which way the price will move.
The volume profiles during this period paint a cautious picture, with no significant spikes indicating a firm decision by market participants. A significant increase in volume would be necessary to confirm a potential breakout and provide the necessary conviction for sustained price action.
SHIB’s recent pattern also features lower highs and higher lows, a tension that suggests an impending spike in volatility. However, without a significant increase in trading volume, it is difficult to predict the direction of the breakout. Should SHIB break the upper trendline of the triangle, it would indicate bullish sentiment and potentially lead to a price increase.
Dogecoin’s surprising rally
Dogecoin (DOGE), the cryptocurrency that started as a joke but became a favorite among retail investors, is now trying to consolidate its position above critical support levels. A look at the DOGE/USDT chart on Binance shows that DOGE is trying to gain a foothold above the intersection of the 50-day and 100-day moving averages – a bullish signal for traders seeking stability.
The chart shows that DOGE recently rebounded from these moving averages, indicating a strong support area around the $0.078 price point. This level has become a litmus test for the meme coin, as staying above it could generate further buying interest. On the other hand, a decline below could trigger a sell-off and test lower support levels.
Currently, DOGE resistance appears to be forming near $0.085, a level where sell orders previously saw consolidation. A break above this resistance could pave the way for DOGE to aim for the next psychological level at $0.1, a target that has eluded it in the recent past.
Trading volumes have been relatively stable, with no significant spikes, which may indicate that no aggressive trading is currently taking place. However, since the crypto market is known for its volatility, any increase in volume could quickly change the current dynamic.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.
Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
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