The value of $150 appears to be the next important level to keep an eye on given the current technical configuration. The bounce is accompanied by a discernible downward volume trend, indicating the possible easing of selling pressure and opening the door for a longer-term upward move.
Still, the chart’s EMA convergence is remarkable. A phase of elevated volatility is frequently preceded by the close convergence of moving averages, particularly shorter-term ones. This convergence suggests that there may be a breakout in either direction, while the market is still in a phase of consolidation. In the long run, the $150 threshold is critical.
It is a psychological barrier as well as a strong correlation with recent price peaks where bulls encountered resistance. If Solana is able to break through and hold above this level, it may indicate the beginning of a new bullish phase and increase interest from buyers. If prices decline, the 200-day EMA will remain a crucial level of support. A decline below this moving average might trigger a retest of lower levels, possibly shaking out weaker hands should Solana fail to sustain its current momentum.
This pattern is frequently interpreted as a bearish indication that there may be more downside pressure on the asset. The price action of Ethereum has been erratic, with momentum waning over the last few weeks, according to the official chart. The 50-day EMA could confirm the death cross and indicate a prolonged bearish trend for ETH if it drops below the 200-day EMA.
The EMAs are gradually converging. What is especially worrying about Ethereum is its lack of momentum. ETH has had difficulty keeping up its upward trajectory following a robust rally earlier in the year, and recent price movements have reflected market weakness and uncertainty.
It is possible that the bulls do not have enough strength to drive the price higher because the trading volume has also been relatively low. The death cross could drastically weaken ETH’s value and force it to retest lower support levels should it materialize.
Investors and traders may begin to turn away from Ethereum in favor of more secure or promising investments. The death cross is a bearish signal, but it is important to remember that it does not always portend more losses. Ethereum’s next move will also depend on external factors, general sentiment and market conditions.
Bitcoin has been trading in a narrow range for the last few months with little movement in either direction. But traders need to be aware that this sideways movement has created two critical price levels. The value of $68,000, which represents the upper bound of the current consolidation range, is the first important level to keep an eye on.
A break above this barrier would suggest a possible breakout and could usher in a new bullish stage for Bitcoin. This level has been tested multiple times, making it a crucial resistance point that may determine Bitcoin’s future course. On the other hand, the lower bound of the range is $52,900. In order to keep BTC from falling into a more obvious downtrend, this level has served as solid support.
A deeper correction of Bitcoin could be triggered if it is unable to hold above this support, which could increase market pessimism. The fact that Bitcoin is currently trading closer to the middle of this range indicates that the market is still unsure of where to go. A breach in either direction could determine the course of Bitcoin’s price movement in the upcoming weeks, so traders should keep a close eye on these two levels.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
