Ethereum
Solana (SOL) Set to Skyrocket to $150 Again, Ethereum (ETH) Huge Gains Ahead? Massive Reversal Pattern Formation, Shiba Inu (SHIB) 20% Stealth
Arman Shirinian
A potential reversal is possible, but the market needs more volume and liquidity
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Solana could target the $150 price threshold again as the price begins to show reversal potential after hitting the 200 EMA. A flattening trend is often one of the first signs of an upcoming price reversal. However, it is important to remain cautious because in the medium term, Solana is still in a downtrend.
THE GROUNDThe /ETH chart indicates that Solana has seen a steady decline over the past few months, but a change could be occurring lately. The price rebounded somewhat after touching the 200 EMA, which served as a support level. This suggests that bullish momentum could be developing.
SHIB/USDT chart by TradingView
Near the oversold zone, at around 35, is where the RSI is currently trading. This could mean buyers are about to step in and selling pressure is easing. The MACD histogram also shows indications of a possible bullish crossover. An increase in purchasing activity is indicated by volume analysis, which can be good news for Solana.
Given the sharp rise in volume bars, it appears traders are starting to stockpile SOL at these lower price levels. Despite these encouraging indicators, it is essential to recognize the difficulties Solana may face during her recovery.
The reversal potential of Ethereum
Ethereum could provide ground for a price rally as the second-largest cryptocurrency enters a descending wedge formation besides leaning on the 50 EMA. At this technical threshold, Ethereum could easily perform a reversal.
The falling wedge pattern is generally interpreted as a bullish reversal pattern indicating that a bullish move may be approaching and the downtrend may be coming to an end. According to Ethereum’s recent price action, the peak of the trend, which usually precedes a breakout, is getting closer. The blue line on the chart, the 50 EMA, has been an important support level. The fact that Ethereum price has repeatedly bounced from this level suggests that there is significant buying interest in this vicinity.
Ethereum’s chances of a bullish breakout of the falling wedge pattern are significantly increased if it can hold this support. The Relative Strength Index or RSI is currently trading near 46, suggesting that Ethereum is neither overbought nor oversold.
Ethereum has the freedom to exit this neutral position without experiencing strong selling pressure. Volume analysis indicates that buying activity is gradually increasing, indicating that traders are starting to accumulate Ethereum at these prices. The possibility of a bullish reversal is further strengthened by the fact that this accumulation phase often precedes a notable price movement.
The Shiba Inu’s last hope?
Despite the huge 25% price drop we saw on Shiba Inu, there is still hope of a reversal around $0.000018. However, a quick look at Shiba Inu trading volume clearly shows that it is not the most favorable asset on the market currently.
Recently, the Shiba Inu price fell by 25%, indicating a significant decline. SHIB is now at a critical support level at $0.000018 due to the decline. This step could constitute a possible turning point in the event of intervention by buyers. Nevertheless, SHIB trading volume has been relatively low, suggesting that there is not much buying interest currently.
An important element that could hinder a rapid recovery is this low volume. Currently, the Relative Strength Index (RSI) is hovering around the oversold zone. This may suggest that a reversal is imminent and that the selling pressure may have been overdone. However, a reversal cannot be ensured by RSI alone: higher buying volume is required.
Resistant moves were made by the moving averages, particularly the 50 EMA. In order to verify a reversal, SHIB must make a significant volume breakout above these moving averages.
Even if the Shiba Inu The market is currently tough, there is some hope due to the support level at $0.000018. We could see a 20% increase if SHIB manages to hold this support and move back towards the moving average.
The broader cryptocurrency market also plays an important role. SHIB could benefit if Ethereum and Bitcoin start to rebound.
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.