It is encouraging for SHIB that trading volume has increased, especially among whale-tier wallets. A resurgence of whale transactions usually indicates that major holders see potential in the asset’s current price level. Whale activity is frequently a key indicator of higher market sentiment.
The continuation of these high-volume transactions may give SHIB the purchasing power required to sustain a bullish trend. Using the 50 EMA, SHIB is trying to maintain its position above important moving averages on the chart. If SHIB is able to sustain these levels, this positioning may indicate that it is preparing for a more robust upward push.
The probability of a bullish reversal would increase with a sustained position above these averages, with possible upside targets close to recent resistance levels. But it is important to keep in mind that speculative trading and general market conditions continue to have a significant impact on SHIB’s price movement. Although the rise in whale activity provides a positive outlook for the time being, SHIB will require steady backing from both large and retail investors to ensure a steady upward trajectory.
This price-RSI divergence is frequently interpreted as a warning indication that the current upward trend may be waning. It is susceptible to a possible pullback because the RSI divergence indicates that buying momentum might not be as strong as the price movement suggests. When traders and investors take profits and new buyers hesitate because of overextended conditions, price retracement becomes more likely.
There are two crucial support levels that might be involved if SOL does decline. Around $161 is the first support level to keep an eye on. Recent consolidation zones where SOL gained traction prior to the most recent rally correspond with this level. Initial support may be provided by this level if selling pressure increases. The 200-day moving average, which has historically been a dependable floor for SOL’s price movements, is at about $144, the next important level below this.
Although the strength of SOL’s bullish trend was demonstrated by its recent rally, the RSI divergence is a technical warning that momentum may be waning. A deeper correction may be indicated if the price is unable to stay above these support levels. To determine whether this divergence turns into a more substantial trend shift, traders should monitor RSI and volume dynamics in the days ahead.
First of all, it is a crucial psychological level that inspires trust in institutional and retail investors. The rise of Bitcoin above $71,000, following months of consolidation, indicates a noticeable change in momentum that might spur additional gains. Additionally, the chart indicates that Bitcoin has clearly exited its prior downward trend channel, a technical indication that bulls are in firm control.
Since Bitcoin has reached this significant milestone, there are a few price points to keep an eye on over the next few days and weeks. The $75,000 mark is a short-term target that presents immediate resistance and, if exceeded, could propel Bitcoin into previously unheard-of levels.
After that, the all-time high of $69,000 might be tested soon, and if bullish momentum continues, Bitcoin has a good chance of reaching $80,000 and higher. Although it is still within reasonable bounds, the Relative Strength Index (RSI) is rising, suggesting that Bitcoin may have more room to run before reaching overbought conditions. This implies that there is no immediate risk of a significant decline in Bitcoin’s value, allowing it to continue growing.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
