Armand Sirignan
Unfortunately, this time the crypto market lost the battle with the bear.
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The Shiba Inu has experienced a significant decline since its recent consolidation phase. The chart is on a clear downward trajectory as SHIB has failed to maintain its position within the ascending triangle pattern it has formed over the past few months.
This breakdown occurred as SHIB price broke through the key support level at $0.000009. This level has previously served as a reliable floor for prices during consolidation phases. Following this, SHIB price fell further and broke the subsequent support around $0.0000087. This price movement signaled a decisive shift in market sentiment from accumulation to distribution.
The next support level to watch is $0.0000082, which could provide temporary relief for SHIB from selling pressure. If this level cannot be sustained, the next important support lies at $0.0000076, which could be the last line of defense before a more significant decline.
For a reversal to occur and for SHIB to regain upward momentum, it will need to regain its previous support level and push it back into support. This would require a significant influx of buying pressure, likely driven by positive developments within the Shiba Inu ecosystem and a rise in the broader crypto market.
The first sign of a possible reversal is a return above $0.0000087, followed by a sustained move above the $0.000009 price level. A breakout of these levels with increasing volume could indicate that the downtrend is losing momentum and the bulls are regaining control.
Solana draws a reversal pattern
Solana has developed a subtle but potentially significant chart pattern. The asset has been following a slow and steady upward channel, and this formation suggests a controlled and consistent uptrend. This pattern features lows and highs contained within two parallel trend lines, indicating the potential for continued growth.
The importance of this pattern lies in the momentum it can bring to SOL. If price action remains strong within the upper half of the channel, Solana could break out and embark on a more aggressive move up, especially if it challenges the upper trend line.
Such a bullish scenario could be supported by increased trading volumes and positive developments within the Solana ecosystem, such as the launch of new projects and updates that improve network performance.
Near-term local resistance is around $55, and a confident break above it could confirm the bullish sentiment. Conversely, if Solana's price falls below the channel's lower limit of around $48, it could indicate that the bearish narrative is taking hold.
Ethereum’s momentum declines
Ethereum is showing signs of slowing down, as seen in recent price movements. The asset, long considered the backbone of the decentralized finance sector, is facing a pivotal moment that could determine its trajectory in the coming weeks.
The chart provided shows that Ethereum is struggling to maintain its grip on the market. The price is trending down and approaching the local his 26-day exponential moving average. This level, currently near $2,465, is significant. If Ethereum fails to hold this line, it could fall to test the more important 50 EMA near $2,300.
The 26 EMA serves as a short-term sentiment indicator, and a breakout of it could signal a lack of near-term bullish support. If this level fails to act as a stepping stone for a price recovery, Ethereum’s next stop could indeed be the 50 EMA. A break below this long-term moving average could open the door to testing lower support levels, highlighting the need for investors to brace for further volatility.
Market participants are now recalibrating their expectations, understanding that the path to sustainable profits is a long-term one.
About the author
Armand Sirignan
