Given how quickly market momentum is fading, Shiba Inu might be about to experience a breakdown. After briefly reclaiming the crucial resistance at $0.000015, SHIB has started to reverse, shedding more than 5% on the daily candle and showing signs of increased selling pressure.
SHIB’s closeness to the 200-day EMA is currently the most important concern. Currently trading just above it, a further decline in price would cause SHIB to fall below this important long-term trend indicator, which would probably cause bulls to panic and pave the way to a more significant retracement. The 200 EMA serves as a bull/bear divider in technical analysis.
A bearish reversal or, at most, a longer period of consolidation is indicated by falling below it. Volume data raises additional issues. After the initial breakout, the bullish volume declined, suggesting that buyers were not consistently interested. Sellers are taking back control without new demand to sustain the rally.
Additionally, the RSI indicates that the recent rally is overstretched and susceptible to additional declines as it rolls over from near-overbought conditions. The next important support is located around $0.000014, and the more important demand zone is located around $0.0000135 if SHIB breaks below the 200 EMA. The decline could be accelerated by a series of stop-loss orders if there is a breach below these levels.
The rally may end if bulls do not intervene forcefully in the next day to maintain the EMA level and restore momentum. Despite encouraging recent gains for SHIB, a quick reversal could wipe out the gains of the previous few weeks if momentum is not maintained at this point. There is not much time left for SHIB to maintain the line.
Ethereum not giving up
Technical signals are beginning to flash red, suggesting that Ethereum’s recent parabolic rally may be coming to an end. With a daily decline of more than 2%, ETH is currently undergoing a significant decline after peaking at over $3,900. After an explosive upswing, a slight retracement is normal, but the volume decline that follows is much more worrisome. Growing or at least steady volume during a rally is typically indicative of a healthy uptrend.
Nevertheless, steadily declining trading volume has followed Ethereum’s breakout, indicating waning buying interest. Even minor waves of profit-taking could spiral into more severe corrections if there is not significant volume to support them. A possible local top has begun to form on the chart for ETH. Long upper wicks on the last few candles are a typical indication of unsuccessful bullish attempts to push higher.
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When you combine that with the fading RSI, which is still close to overbought territory but is beginning to show early indications of a decline, you have a market that is ready to reverse. Going forward, the $3,000 zone — which served as a formidable resistance prior to the breakout — and $3,682 are important levels to keep an eye on. It is likely that a break below $3,600 would signal the beginning of a more extensive correction phase.
Despite its apparent stability, ETH’s current trend is beginning to show signs of weakness. While volume data demonstrates a lack of buyer conviction, price action points to exhaustion. Ethereum’s spectacular rally could end much sooner than anticipated if bulls do not regain control soon. The decline could be as steep as the ascent.
Bitcoin not gives up
Bitcoin appears to be on the verge of a critical breakout, potentially rewriting short-term expectations for the market’s leading asset. After facing rejection near the $120,000 level, BTC entered a mild corrective phase — a move that some feared might lead to a deeper retracement.
Since then, though, the asset has leveled off and is beginning to show strength. The chart displays a traditional bullish consolidation pattern, with the price regularly bouncing off short-term support levels and a descending trendline forming across the most recent local highs. Similar to a falling wedge, this structure usually resolves to the upside. Bitcoin might make another attempt at the $120,000 resistance level sooner than many had predicted if this turns out as planned.
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While Ethereum and other significant assets are beginning to show signs of exhaustion, Bitcoin‘s correction has been comparatively shallow. While momentum indicators like the RSI are cooling down just enough to reset for another push without entering bearish territory, the 21-day moving average is still being respected. Despite a brief retracement, the volume is steady and a little muted, which indicates that sellers are not assuming complete control.
The bullish structure holds true as long as the price stays above the $114,000-$116,000 range. If Bitcoin is able to break through the downward trendline and regain control over $120,000, it may lead to a fresh round of buying motivated by FOMO.
