Solana
Shiba Inu (SHIB) Hits Important Level, Solana (SOL) Reaches Crucial Support, Bitcoin (BTC) Downtrend Too Strong, But There’s a Catch
Arman Shirinian
Market volatility falls as investors can’t yet choose their direction
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Shiba Inu recently reached a critical support level at $0.000022. This price level 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 SHIB oscillates around this level, the potential for a significant breakout looms, possibly defining its trajectory in the coming weeks.
The $0.000022 mark is not just another number on the chart; it represents a key psychological and technical level for SHIB. Technical analysis shows that SHIB has tested this level several times, making it an important point of interest for traders and investors. A decisive move away from this level could signal a new phase for SHIB, potentially leading to a robust recovery or, conversely, a deeper pullback.
SHIB/USDT chart by TradingView
One of the notable aspects of the current market situation for SHIB is the unusually low trading volume. This lack of volume indicates a period of consolidation, with many investors left on the sidelines, waiting for clearer direction in the market.
As the previous U.today article highlights, there has been a notable absence of large transactions, or “whale” activity, within the SHIB market. This lack of significant transactions from large market players could contribute to the low volume and current price stagnation. Without the influence of whales, the price of SHIB is less likely to experience the sharp rises or falls that large trades 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 a return of whale activity, SHIB could quickly exceed this level.
Solana’s critical level
Solana has approached a crucial level, hitting the 100-day exponential moving average (EMA), a key support level that could dictate its near-term trajectory. As SOL moves below the 50 EMA, the bears have much more 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 because it represents a potential turning point where the market could either affirm its confidence in the active, leading to a price reversal, or continue the downward trend if the level fails to be maintained. Historically, the 100 EMA has served as resilient support for many assets, providing a psychological comfort zone for investors.
One of the notable trends accompanying by Solana Approaching the 100 EMA is decreasing 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 possible recovery. On the other hand, low volume may also suggest a lack of interest in purchasing the asset, which might not bode well if the price attempts to rebound.
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 could deter 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 new support levels, further strengthening the bearish sentiment around the asset.
Bitcoin in trouble
Bitcoin showed signs of struggle, remaining stuck below the trendline resistance of the descending trading channel. This trend suggests that the cryptocurrency may not have the momentum to surpass important price levels, such as the $62,000 threshold, in the near future.
The trendline in question has historically acted as a barrier for Bitcoin, reflecting points where selling pressure intensifies. This resistance has become a critical point that we should monitor, as a break above could signal a bullish market reversal, while breaking above could result in continued downtrends.
Bitcoin’s current trajectory below this strong trendline resistance highlights a market struggling with multiple factors. These elements contribute to the hesitation of investors to initiate strong buying actions at higher prices, keeping the price below the $62,000 mark.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.