With the meme coin chart screaming red as it breaks below important support levels, Shiba Inu is on the verge of adding another dreaded zero to its price. SHIB is now trading at $0.0000133, down about 4% for the day, and that is not even the worst part. A technical line that has been the last vestige of support for SHIB in recent months, the 50 EMA has clearly broken below, and this is the most concerning indication.
In the $0.0000120-$0.000009 range, SHIB may easily test the early 2025 lows if this breach becomes a sustained move. Retail traders who had been hoping for a recovery will suffer a psychological blow at that point, as it would add another zero to its price. With selling volume increasing and the RSI drifting lower, the volume profile is similarly dismal, indicating that momentum is currently on the side of the bears.
The chance of seeing $0.000009 increases daily if SHIB does not swiftly recover the 50 EMA and push back above $0.0000145-$0.0000150. Adding another zero would have a significant negative impact on investor sentiment in addition to being a technical failure. Because Shiba Inu thrives on speculation and hype, price erosion of this kind can quickly deplete liquidity and cause even the most loyal retail bag holders to rethink their wagers.
At the moment, the meme coin is trapped in a range of waning optimism, so any brief recovery should be viewed as a reprieve. Watchfulness is necessary until SHIB can regain lost ground and close above the 50 EMA. The failure of $0.0000120 could result in a severe decline to $0.000009, which would transform the present bearish mood into complete hopelessness.
Bitcoin’s recovery chances
The recent price movement of Bitcoin is offering a traditional setup that traders ought to be closely monitoring. Bitcoin is currently testing the 26 EMA as a possible support level after rising to new local highs around the $110,000 mark. Bitcoin dropped from its most recent peak and formed a string of red candles, indicating a significant loss of momentum from the highs in the price performance over the last few days.
This is normal behavior when the market needs to calm down following a strong rally, but the emerging candlestick pattern tells the true story. Here, we are witnessing a possible candlestick reversal. A notable lower wick on the most recent daily candle indicates that buying pressure is returning as Bitcoin tests the 26 EMA support zone. Usually this long-tailed doji-like pattern indicates that buyers are prepared to defend these levels as sellers are losing control.
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Put differently, this might mark the beginning of a brief reversal from the current decline. With the 26th EMA at $104,000 and additional important support at $99,800-$100,000, Bitcoin is currently trading at about $106,000.
Bitcoin might swiftly rebound to retest the $110,000 range in the upcoming sessions, if not surpass it, if this reversal pattern holds. There is a genuine chance of a deeper retracement toward the 50 EMA, which is around $95,000, if support at the 26 EMA fails. As a result, the market would probably be able to shake out weaker players and reestablish a stronger foundation for future attempts to reach new highs.
As of right now, the reversal candlestick offers hope that Bitcoin’s bullish trend is still going strong, but the coming days will be crucial. For confirmation, traders should keep an eye on the price movement and volume levels surrounding the 26 EMA. With this technical pattern supporting it, Bitcoin might be poised for another leg higher if buying pressure increases.
Ethereum is stuck
A narrow ascending channel that has been gradually pushing prices higher is the tight and distinct trading pattern that Ethereum is displaying. Despite its initial bullish appearance, this is beginning to feel like a trap. ETH is currently trading at about $2,690 with resistance close to $2,850 and support at the $2,500 mark. ETH has been steadily rising as the channel itself has been developing for a few weeks. A breakout is not exactly supported by the volume profile, though.
Actually, over the past week volume has been gradually dropping, which suggests that traders are not very confident. Because it raises the possibility that the current channel is running out of steam, this decreasing volume is concerning. We may witness a brief decline to the $2,400 region if ETH breaks below this channel’s lower trendline; if that does not happen, $2,100 is the next reasonable target.
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However, it might also mean that the market is finally waking up and getting ready for another leg higher if ETH is able to break through the $2,850 barrier. Not to be overlooked is the larger context.
Although the 50 and 100 EMAs are displaying some compression around the current price levels, ETH is still recovering from a protracted and agonizing downtrend. The market is waiting for a significant event to occur, which is a classic indication of indecision. ETH is currently trapped in this channel, but it will eventually break free. Pay attention to those critical resistance and support levels. ETH will probably set the tone for the next significant move once it exits this channel either upward or downward.
