Armand Sirignan
The market’s bullish recovery that started a few days ago seems to have come to an abrupt end.
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Shiba Inu price has broken below the important $0.000027 level and is breaking out of the symmetrical triangle pattern. This movement is very problematic as it is usually a pattern that acts as a solid support. The collapse of this formation could very well indicate the future direction of SHIB.
Looking at the chart, we can see that the price of SHIB is below the symmetrical triangle, indicating a bearish outlook. This triangle acted as a consolidation zone before the breakout and was holding as support, giving hope for an upside reversal.
It has now been broken, and the level around $0.000027 may serve as resistance. If the price struggles to break above this line, it could confirm the start of a downtrend.
In the current scenario, further decline is likely. The next support is near $0.000024, where buyers could step in to halt the decline. However, if prices stabilize and buyers regain momentum and push back into the triangle, the breakdown could be overridden and SHIB’s upward momentum could be reignited.
For growth to be back in the conversation, SHIB will need to regain its position within the triangle and target the upper bound, likely around $0.00003. If the volume increases and sustains a solid break above this level, the story could turn bullish again and push SHIB towards higher resistance levels.
Uniswap’s problematic decline
Uniswap’s price has fallen into question as the market reacts to a recent notification from the U.S. Securities and Exchange Commission (SEC). The notification triggered an exodus from the exchange and raised concerns about the platform’s regulatory position and the future of the token.
This news weighed heavily on UNI’s price, sending its stock price below $9. The daily chart shows a decisive break below this psychological level, and the next possible support lies around the 200-day moving average at around $8.35.
If this level cannot be sustained, Uniswap’s next support could be even lower, creating an even more bearish outlook for the token.
The decentralized nature of Uniswap is one of its most attractive features, allowing you to trade without heavy regulation or oversight. However, if litigation begins between the SEC and Uniswap, it could create even greater risks for investors and directly impact the price of the DEX’s underlying tokens.
Cardano is finally supported
Cardano recently reached a major support level with its price dropping to $0.56. This is a crucial moment as ADA relies on the 200-day EMA line, which has proven to be strong support in the past. In March 2024, ADA rebounded from this level and continued to reach local highs, demonstrating the importance of this level.
The current scenario for Cardano is one of hesitation. The 200 EMA is around $0.5271 and serves as the next bulwark of support below the current price. While ADA has historically shown strength at this level, current market momentum suggests a lack of immediate energy to drive a quick recovery.
ADA has fallen to the support zone around $0.56, so there is a chance for it to stabilize if the price can sustain above the 200 EMA. However, if ADA breaks through this line of defense, it could open the door for further declines and test the resilience of the lower support zone.
Regarding growth prospects, Cardano faces a difficult upswing. A retrieval of higher levels, especially near the $0.61 line, would be necessary to change the current trajectory. This level, which was once support, may now act as resistance, and a firm break above this level could signal a return to the bullish trend.
About the author
Armand Sirignan
