Ethereum
Shiba Inu (SHIB) Hanging on the Cliff’s Edge, Dogecoin (DOGE) Heading Toward $0.13, Ethereum (ETH) Really Needs That Support
Arman Shirinian
The current state of the cryptocurrency market raises serious concerns
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Shiba Inu is facing a period of uncertainty and is generally showing a bearish trend although it was in a relatively good position only a few days ago. However, things change quickly after falling below the 100 EMA (represented by the orange line on the chart).
Recent price action suggests a substantial change in sentiment. Shiba Inu has traditionally found strong support at the 100-day exponential moving average (EMA), but the current decline below this line indicates increasing selling pressure.
SHIB/USDT chart by TradingView
The 200-day EMA, a critical long-term support level, is now too close to SHIB due to this move. Additionally, the Shiba Inu’s precarious situation is made worse by poor market conditions. Traders and investors are closely monitoring SHIB price action as it approaches crucial support levels, looking for indications of a potential recovery or further decline.
There was a bearish crossover indicated by the positioning of the 50-day EMA above the price. Given that short-term dynamics appear to be working against Shiba Inu, this situation is frequently interpreted as a bearish signal. There could be a more sustainable downtrend if the price fails to regain this level quickly.
Market dynamics today can also be understood by looking at volume trends. The recent surge in trading volume during the recession suggests that more investors are liquidating their SHIB holdings; Apart from that, Bitcoin’s fall below $70,000 is most likely causing some panic among investors. investors.
Dogecoin goes down
Dogecoin is continually losing volume and market appeal following the death of the Shiba Inu dog that inspired the meme. However, it is surprising that investors are dumping their DOGE holdings, given its potential for widespread adoption, especially with the planned implementation of DOGE in Payment System X.
Dogecoin is currently testing important support levels while its price is falling. These technical indicators paint a worrying picture. DOGE has fallen below its 100-day exponential moving average. This drop implies that the bears are in control for the moment, pushing the price towards the 200-day EMA, which represents the next important support level at $0.13.
It will be difficult for DOGE to regain its bullish momentum given weakening volume, indicating a lack of compelling buying interest. As the Relative Strength Index (RSI) approaches oversold territory, there may be a chance for a brief price rally. But the overall market sentiment remains negative, so gains could be limited unless there is a significant change in market dynamics or investor sentiment.
Ethereum’s life support
Ethereum is at a critical level where a single level of technical support could define its performance for the coming week. The 26 EMA level is currently the key threshold preventing Ethereum from falling to $3,380.
Ethereum experienced significant volatility, which tested multiple support and resistance levels. The price is currently hovering around the 26-day EMA. This level constitutes crucial support which, if broken, could cause a further decline.
Ethereum is struggling to maintain its position above the 26 EMA. The price could move towards the next significant support level at $3,380, which corresponds to the 50-day EMA (blue line), if a decline below this level indicates further downtrend. momentum.
This could potentially unsettle investors as it would represent a significant decline from its recent highs. On the positive side, Ethereum could regain some bullish momentum if it manages to hold above the 26 EMA level. Resistance at $3,700 remains a crucial level to watch. If ETH breaks this figure, it could test more resistance levels, possibly reaching $3,900.
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.