Shiba Inu (SHIB) turns bullish, Ethereum (ETH) price screams rally and continues, Bitcoin (BTC) does not give up its market dominance

Arman Shirinyan

Top crypto assets are currently in correction mode, but all have reversal potential

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Shiba Inu is currently showing an ascending triangle pattern on the SHIB/USDT chart. This technical formation is widely recognized and could be a signal of a significant price increase for the meme.

An ascending triangle is characterized by a flat upper resistance line and a rising lower support line. This pattern suggests that buyers are gradually gaining ground on sellers as each dip is bought up at a higher level than the previous one, suggesting that pressure for an upside breakout is building.

SHIB/USDT chart from TradingView

For Shiba Inu, which is in a period of relatively non-existent activity, this pattern could serve as massive fuel for volatility in the near term. Recent market conditions have resulted in a decline in interest in old meme coins, with SHIB being no exception. The lack of significant developments within the Shiba Inu network has contributed to the muted activity surrounding this cryptocurrency.

In contrast, the majority of action in the meme coin sector has taken place on the Solana network. This platform has become a hotbed for the deployment of new meme coins that have far greater volatility than that on the Ethereum network, where Shiba Inu is based. The brisk activity on Solana stands in sharp contrast to the sluggishness observed in Ethereum's meme coin space, attracting traders and investors looking for quick profits and big excitement.

Ethereum’s correction is temporary

The Ethereum market is currently in a correction and there are patterns that suggest a rally is not only imminent but could continue. The asset has recently experienced a sharp decline, a move that is clearly visible on the intraday time frame. However, such strong moves are often harbingers of reversals and signal that Ethereum could be preparing for a rally.

A closer look at the charts shows Ethereum's price action in terms of a number of key technical indicators, which together make a case for potential bullish momentum. The asset has returned to base with its moving averages, a behavior that is typically followed by a recovery as these levels can act as dynamic support zones.

This correction phase is notable, especially given the strong rally that Ethereum has experienced in recent weeks. Corrections are a natural and healthy part of an asset's price movement and allow for consolidation before the next rise. For Ethereum, the current decline could result in weak hands being paid out, setting the stage for a stronger rally driven by a more engaged investor base.

Bitcoin’s dominance isn’t going anywhere

After briefly breaking below the 50-day EMA – a critical indicator of medium-term market sentiment – ​​Bitcoin has struggled back above this crucial level. This move signals a bullish signal for market observers, indicating that Bitcoin is not yet ready to give up its market dominance.

However, the rise above the 50-EMA level was not met with the strong momentum that the bulls would have hoped for. The growth was moderate, suggesting that Bitcoin could face selling pressure as it rises. This is not uncommon in crypto markets, where significant moves are often met with immediate resistance as traders take profits and skeptics express doubts.

The recent price action has been a roller coaster ride for Bitcoin, with its value falling from highs around $47,000 to lows around $41,000. This downturn briefly shifted the focus to altcoins, which took advantage of the opportunity to stage local rallies. Diversifying profits across the crypto spectrum during Bitcoin weak periods is a trend that will become more pronounced as the overall market matures.

But Bitcoin's ability to climb back above the 50 EMA is a reminder of its underlying strength and the confidence investors have in it. Despite the opportunity for altcoins to rise, Bitcoin remains the anchor of the crypto market, with its movements often determining overall market sentiment. This recent rally above a crucial technical level could be interpreted as a quiet assertion by Bitcoin that it is not yet ready to give up the throne.

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.

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