First and foremost, a close examination of the SHIB/USDT chart reveals a coin that is in a fierce battle with the 21-day Exponential Moving Average (EMA). The 21-day EMA has historically acted as a decisive indicator of bullish or bearish momentum for many cryptocurrencies.
Source: At present, seems to be testing this crucial resistance level, indicating a struggle between bears trying to push the price down and bulls aiming to propel it higher. If SHIB manages to close above this level, traders could expect newfound bullish momentum.
However, while there is visible optimism on the chart, it is crucial not to overlook some underlying factors. One of the most conspicuous elements is the descending trading volume. A price chart depicting a cryptocurrency battling key resistance, like the 21-day EMA, ideally should be accompanied by rising trading volumes.
This would indicate a strong buying interest and add validity to the price movement. In SHIB’s case, the decreasing volume presents a contrary narrative. It raises concerns over the sustainability of any bullish run, as a surge without substantial volume support might be short-lived.
Ethereum appears to be navigating challenging waters. For the past few weeks, a discernible downtrend has been evident. The price movements have been confined beneath the descending resistance line, characterized by lower highs and lower lows. This paints a somewhat bearish picture, indicating consistent selling pressure at higher levels.
However, not all hope is lost for the Ethereum enthusiasts. The coin is currently hovering around the $1,600 mark, which has historically acted as a significant support and resistance zone. If Ethereum can close above this level and maintain its stance, it could be an early indicator of a trend reversal. A sustained move above this threshold could catalyze further buying interest, potentially propelling ETH to higher levels.
Upon examining the provided SOL/USDT chart, one can observe a budding uptrend. The price appears to be finding support along an ascending trendline, suggesting growing confidence among buyers. Notably, this current uptrend bears resemblance to the early stages of Solana’s surge in June. Back then, Solana’s price steadily built momentum before skyrocketing in September, reaching unprecedented highs and solidifying its position as one of the top crypto assets.
However, while the current chart displays optimistic signs, it is crucial to note the differences between the two periods. The explosive growth in September was a combination of fundamental and technical factors. The launch of various decentralized applications (dApps) on , along with growing adoption, were significant catalysts. It was a perfect storm of demand, technology and market sentiment propelling Solana into the spotlight.
In contrast, the current scenario is marked by industry-wide hesitation, with many cryptocurrencies grappling to regain their former glory after substantial pullbacks. Although Solana’s recent movements hint at a potential bullish phase, the magnitude and pace of its ascent might not mirror that of September.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
