Solana Rally has been cancelled
With the anticipated Golden Cross setup now off the table, Solana couldn’t establish a lasting bullish breakout yet again. The short-term moving averages had temporarily hinted at a possible crossover of the long-term trendline, but that momentum quickly diminished, forcing prices back under key resistance levels.
The Golden Cross is a classic bullish indicator that often precedes significant price increases. This occurs when the 50-day moving average moves above the 200-day average. However, in Solana’s case, the 50 EMA didn’t manage to firmly break above the 200 EMA, even after a brief convergence of the averages in early June. Instead, they merely grazed one another before pulling apart again, indicating a lack of strength in Solana’s recent price movements. This technical setback has added to the bearish sentiment across the chart.
Currently, Solana is having trouble staying above several important moving averages—26, 50, 100, and 200-day EMAs—after struggling to maintain its position above the $150 USDT zone. The asset hasn’t really held onto any recovery from last week’s low of around $130 and is trading close to $143 now. There’s no significant buying interest at play, which is evident from the continuing decline in trading volume.
With RSI figures lingering in the 40s, market participants are hesitant to take risks, and overall momentum remains weak. Structurally, Solana’s rejection near the 200 EMA and lack of supportive volume suggests the possibility of continued decline into a horizontal or downward trajectory, unless the broader market experiences a revival.
At this juncture, traders should exercise caution. The collapse of the Golden Cross setup diminishes the earlier bullish narrative. Solana seems poised to either consolidate or potentially drop back to the $125 level if fresh volume or significant market catalysts don’t emerge.
Shiba Inu Recovery is imminent
Shiba Inu is showing some signs of market recovery. However, a closer look at the daily charts suggests that caution is warranted. SHIB bounced back to the $0.0000120 range after a notable decline from a recent low of around $0.0000110 USDT, fueled by an uptick in its relative strength index (RSI).
This rise in RSI forms the basis of the current upward movement, but it might not be enough to maintain strength. While the short-term price action seems optimistic, the occurrence of a shooting star candlestick pattern raises concerns about the sustainability of this rally. This particular pattern often indicates potential exhaustion, characterized by a long upper wick and a small body near the session’s low.
This could signal that the recent buying pressure on SHIB is already waning. The volume indicators remain relatively low, making it difficult to gauge the strength of the rebound. It seems likely that there will be short pullbacks before any long-term sustained breakouts can occur, as it’s currently not possible to generate meaningful follow-through.
The 26 EMA, which sits around $0.0000134 USDT, has become immediate resistance for SHIB. Transitioning from recovery to a more significant reversal will necessitate clear breaks and sustained movement past that level. In the meantime, the combination of bearish candlestick setups and low volumes strongly suggests that close attention is needed.
