Is Shiba Inu preparing for Death Cross? Critical Cardano Breakdown, Next Bitcoin (BTC) Support Level Revealed

Arman Shirinyan

A threatening pattern is emerging as Shiba Inu remains in a downtrend and the rest of the market is also in battle mode

Continue reading U.TODAY

Google News

Shiba Inu traders are closely watching the charts for the ominous technical formation known as the Death Cross. This event occurs when a short-term moving average like the 50-day moving average crosses below a long-term moving average like the 200-day moving average and is often interpreted as a bearish signal.

Shiba Inu’s recent price action has shown the gap between these crucial moving averages narrowing, suggesting a possible convergence. The current proximity of the EMAs is indeed a textbook harbinger of a possible death cross. As the moving averages get closer, the likelihood of a bearish reversal increases, which could spell trouble for Shiba Inu's short-term price action.

SHIB/USDT chart from TradingView

Should the death cross occur, it could mean a shift in market sentiment from bullish to bearish, leading to a possible reversal in Shiba Inu price. This could trigger a sell-off as traders often view such a cross as a signal to exit positions, further exacerbating downward pressure on the asset's value.

If SHIB manages to defy the bearish effects of the Death Cross, the asset could stabilize and even increase in value, targeting a resistance level at $0.0000093. However, the bearish scenario suggests that a confirmed death cross could push SHIB price lower, potentially leading to a retest of support at lower levels.

Cardano's massive decline

Cardano recently experienced a critical breakdown, breaking key support levels that previously bolstered its value. This downturn signals caution to investors as the digital asset struggles with bearish momentum.

ADA price has fallen below the key support level at $0.58, an area that has triggered strong buying pressure in the past. Breaking below this pivot point has opened the door for further possible declines and increased the possibility of a continued downtrend.

Looking at the recent price action, the possibility of another breakout cannot be ignored. If selling pressure continues and ADA is unable to quickly regain its lost support, we could see the price target at the next key support level at $0.54. This level must be maintained; Otherwise, ADA could face a sharper decline towards the psychological threshold of $0.50.

However, it's not all doom and gloom for Cardano. If ADA can halt and stabilize the current sell-off, there is a possibility of a trend reversal. For such a recovery, ADA would need to reclaim the $0.58 level and re-establish it as support, potentially allowing a rally to resistance levels around $0.60 and above.

In a bullish scenario, ADA would find enough buying interest near its current levels to initiate a recovery, overcome immediate resistance levels and aim for a retest of $0.60. This bullish argument would strengthen if ADA showed a strong reaction to the oversold conditions indicated by technical indicators such as the Relative Strength Index (RSI).

Conversely, the bearish scenario envisages ADA failing to regain its footing, resulting in a sustained downtrend. A sustained move below $0.54 could test the resilience of the $0.50 support, a critical level for maintaining any remaining bullish structure.

Bitcoin is in battle mode

Bitcoin has experienced turbulence after its recent rally. As traders and investors scan the charts for clues to the next move, certain support levels are coming into focus and providing insight into where BTC could gain a foothold.

Looking at the chart, Bitcoin's immediate support can be found at the $48,000 level, where it previously attracted buying interest. This zone corresponds to the 50-day moving average, a commonly watched indicator that often acts as dynamic support during uptrends.

If bearish momentum pushes the price below this level, the next critical support is expected at the $45,000 level, which coincides with the 100-day moving average. This area is crucial; A decisive break lower could signal a deeper retracement towards the $42,000 region, where the 200-day moving average lies.

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