News
Shiba Inu (SHIB) Reaches Major Level, Solana (SOL) Reaches Crucial Support, Bitcoin (BTC) Downtrend Is Too Strong, But There’s a Problem
Arman Shirinyan
Market volatility collapses as investors cannot yet choose direction
Continue reading U.TODAY
Google News
Shiba Inu it recently reached a critical support level at $0.000022. This price point is crucial for the asset as it has historically acted as both a springboard for upward movements and a barrier to prevent further declines. As the SHIB hovers around this level, the potential for a significant shift looms, which could define its trajectory in the coming weeks.
The $0.000022 mark is not just another number on the chart; represents a key psychological and technical level for SHIB. Technical analysis shows that SHIB has tested this level multiple times, making it a significant point of interest for traders and investors. A sharp move away from this level could signal a new phase for the SHIB, potentially leading to a robust recovery or, conversely, a deeper retreat.
One of the notable aspects of the current market condition for SHIB it is the unusually low trading volume. This lack of volume indicates a period of consolidation, with many investors sitting on the sidelines, waiting for a clearer direction in the market.
As highlighted in the previous U.today article, there has been a notable absence of large transactions, or “whale” activity, within the SHIB market. This absence of significant transactions by larger market players could contribute to the low volume and current price stagnation. Without the influence of whales, SHIB’s price is less likely to experience the sharp spikes or dips that large transactions typically cause.
Looking ahead, SHIB’s position at this critical support level, combined with its low volume, sets the stage for a potentially volatile breakout. If market conditions change, such as an increase in trading volume or the return of whale activity, the SHIB could quickly rise above this level.
Solana’s critical level
Solana has approached a crucial level, reaching the 100-day exponential moving average (EMA), a key support level that could dictate its near-term trajectory. As the SOL moves below the 50 EMA, the bears are much more in control than the bulls.
The 100 EMA is often considered a benchmark for determining long-term market sentiment. For Solana, touching this EMA is crucial as it represents a potential turning point where the market could affirm its confidence in the resource, leading to a price reversal, or continuing the downtrend if the level fails to hold. Historically, the 100 EMA has served as resilient support for many assets, providing a psychological comfort zone for investors.
One of the accompanying notable trends Solana’s The approach to the 100 EMA is descending trading volume. This reduction in volume can be interpreted in several ways. On the one hand, this could indicate a lack of selling pressure at lower prices, which could be positive for a potential recovery. On the other hand, low volume can also suggest a lack of interest in purchasing the asset, which may not bode well if the price tries to move back up.
Currently positioned below the 50 EMA, Solana is showing a bearish trend that we cannot ignore. This positioning below a significant short-term moving average may discourage some traders, particularly those who rely on these averages as part of their trading strategies. The 50 EMA acts as a dynamic resistance level, and staying below it could push Solana to test further support levels, increasing bearish sentiment around the asset.
Bitcoin in trouble
Bitcoin showed signs of trouble, getting stuck below the trend line resistance of the descending trading channel. This pattern suggests that the cryptocurrency may not have the momentum to surpass significant price levels, such as the $62,000 mark, in the near future.
The trend line in question has consistently acted as a barrier for Bitcoin, reflecting points where selling pressure intensifies. This resistance has turned into a critical point that we should pay attention to, as a break above could signal a bullish reversal in the market, while failure to break above could see continued bearish trends.
Bitcoin’s current trajectory below this strong trendline resistance shows a market grappling with multiple factors. These elements contribute to investors’ hesitation to initiate strong buying actions at higher prices, keeping the price below the $62,000 mark.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in 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.