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Contents
- The decline of Bitcoin
- Shiba Inu follows
Ethereum’s recent sharp decline has dashed hopes of a long-term upswing. With a drop below its rising trendline, the cryptocurrency’s bullish momentum has reversed. With ETH now trading at around $2,400, a dangerously low level for the second-largest cryptocurrency by market cap, this plunge has pushed the asset below the crucial $2,500 mark.
The $2,500 level has been breached. A break below this level suggests that Ethereum may face further losses as it has acted as a key support zone in the past. The pessimistic forecast is further supported by the decreasing volume accompanying this decline. Lower buying interest is usually indicated by lower trading volume during a price decline, which could worsen the current downtrend.
The break below the ascending trendline is particularly worrying as it suggests that the recent rally that had given investors hope is coming to an end. Ethereum may find it difficult to regain its footing in the near future as this trendline is now acting as resistance.
Due to the change in market sentiment, the chances of us seeing an extended bear market are increasing. Traders and investors should prepare for possible further downside as Ethereum remains stuck around $2,400.
The decline of Bitcoin
Bitcoin price recently fell sharply and returned to the 200-day exponential moving average. The confidence of traders who were expecting a long-term rally was shaken by this move, which is a sign of an impending price correction and a possible trend reversal.
A $200 million market plunge has raised concerns among investors about Bitcoin’s near-term viability. Such a significant drop in market cap could lead to increased selling pressure and a potential price pullback. Given that the 200 EMA has traditionally been a crucial support level, it is alarming that Bitcoin has been unable to hold above it.
Related
The fact that Bitcoin has once again broken below the coveted $70,000 threshold in this market cycle is even more disheartening for cryptocurrency lovers. For traders and investors, this level has been an important psychological target, and failure to reach it means that the upside momentum has slowed down. It is clear from the recent price action that Bitcoin is currently in a risky situation.
The market could turn from a bullish phase to a bearish one if it returns to the 200 EMA. An extended downtrend could start if the price breaks below this level, possibly retesting lower support levels at $55,000 or even $50,000.
Shiba Inu follows
After a failed attempt at a price reversal, Shiba Inu, the once-dominant meme coin, is now at a critical juncture. The 50-day exponential moving average (EMA), a critical resistance that when crossed usually indicates a continuation of the uptrend, is proving difficult for the cryptocurrency to break.
Concerns about the asset’s short-term future are raised by SHIB’s inability to cross this threshold, indicating a lack of buying support. The overall market sentiment regarding Shiba Inu is reflected in the failure to break above the 50 EMA, which goes beyond a simple technical setback.
Related
As the asset appears to be losing momentum, investors who were expecting a strong recovery may be reassessing their positions. With fewer traders willing to bet on SHIB’s recovery, volume is decreasing, further highlighting the lack of confidence.
Given the state of the market, there is an increasing possibility of Shiba Inu undergoing a significant reversal. Selling pressure from investors looking to cut their losses could increase if the asset remains weak below the 50 EMA. This could trigger a downward spiral where the lack of buying interest accelerates SHIB’s decline and pulls it further away from its recent highs.
