Memecoins are taking over the cryptocurrency market while “serious projects” like Ethereum are losing
The last week in the cryptocurrency market has been more than reassuring as the majority of assets including Ethereum, Bitcoin and even Dogecoin have shown some signs of an accelerated reversal that could not have happened without the correction we saw today.
Shiba Inu and other meme currencies calmed down
Shiba Inu’s price action earlier this week put the market in the spotlight as the long-forgotten memetoken gained more than 25% in value in less than 24 hours of trading. The price increase was mainly tied to the technical conditions of the asset, which has been in a consolidation for the past 90 days.
As noted by veteran trader Peter Brandt, SHIB formed at least one pattern that indicated an impending trend reversal, namely the inverted head and shoulders pattern that occurs at the end of a downtrend.
With the successful completion of the pattern, Shiba Inu broke the local resistance level and reached the 50-week moving average, which is considered the long-term barrier between bullish and bearish assets.
SHIB’s competitor, Dogecoin, also followed the performance of its “younger brother,” as the coin gained about 15% of its value over the past 24 hours, but lost almost half of its growth the day after.
Ethereum denied at $2,000
Despite the euphoria surrounding the merge update that fueled the rally to $2,000, the second largest cryptocurrency in the market failed to gain a foothold at the key resistance level and quickly returned below the $1,900 line.
While a reversal from $2,000 may look worrying, Ethereum’s fundamental value hasn’t changed one bit as long-term investors are still optimistic about the merge update and believe it will be disruptive for the future of the project.
The activity of major Ethereum addresses also suggests that whales are preparing for September “Day X” market volatility as almost any technical issue could cause a massive drop in Ether’s value.
Bitcoin shows weakness
Despite the recent surge to $25,000, Bitcoin remains weak from both a technical and fundamental perspective as the first cryptocurrency’s trading volume hits another bottom, showing that the majority of investors are still unsure of what will happen to BTC anytime soon becomes.
From a fundamental perspective, Bitcoin, like other risky assets, remains under pressure during rate hike cycles and monetary tightening. As most analysts expect, this will last until late 2022 or early 2023.
From a technical point of view, BTC remains in the ascending wedge pattern and is continuously moving higher, but due to the lack of trading volume and price action, it is safe to say that the situation on the chart will most likely change drastically with the next volatility spike.
At press time, Bitcoin is consolidating at $24,000 and has lost around 1% of its value in the past 24 hours.
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