Shiba Inu is facing a period of uncertainty and in general showing a bearish tendency despite being in a relatively good spot only a few days ago. However, things are changing rapidly after it dropped below the 100 EMA (represented by the orange line on the chart).
Recent price movement suggests a substantial change in sentiment. Shiba Inu has traditionally found strong support at the 100-day Exponential Moving Average (EMA), but the current dip below this line indicates increasing selling pressure.
SHIB/USDT Chart by TradingView
The 200-day EMA, a critical long-term support level, is now too close to SHIB due to this movement. Additionally, Shiba Inu's precarious position is aggravated by poor market conditions. Traders and investors are keeping a close eye on the price action of SHIB as it approaches crucial support levels, looking for any indications of a potential recovery or further decline.
There has been a bearish crossover indicated by the 50-day EMA being positioned above the price. Given that the short-term momentum appears to be against Shiba Inu, this situation is frequently interpreted as a bearish signal. There may be a longer-lasting downward trend if the price is unable to quickly regain this level.
The dynamics of the market today can also be understood by looking at volume trends. The recent spike in trading volume during the downturn suggests that more investors are liquidating their SHIB holdings; apart from that, Bitcoin's drop below $70,000 is most likely causing some panic among investors.
Dogecoin descends
Dogecoin is continuously losing volume and traction on the market after the death of the Shiba Inu dog that inspired the meme. However, it is puzzling that investors are offloading their DOGE holdings, considering its potential for widespread adoption, especially with the anticipated implementation of DOGE in the X payments system.
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Dogecoin is currently testing important support levels as its price has been declining. These technical indicators paint a worrying picture. DOGE has descended below its 100-day Exponential Moving Average. This decline implies that the bears are in control at the moment, pushing the price in the direction of the 200-day EMA, which represents the next important support level at $0.13.
It will be difficult for DOGE to recover its upward momentum given the weakening volume, which indicates a lack of compelling buying interest. As the Relative Strength Index (RSI) approaches oversold territory, there may be a chance for a brief uptick in price. But the general mood of the market is still negative, so any gains might be limited unless there is a big change in the dynamics of the market or investors' sentiment.
Ethereum's vital support
Ethereum is at a critical level where a single technical support level could define its performance for the upcoming week. The 26 EMA level is currently the key threshold that holds Ethereum from falling toward $3,380.
Significant volatility has been experienced by Ethereum, which has tested several levels of support and resistance. The price is currently circling the 26-day EMA. This level is serving as a crucial support that, if broken, could cause a more significant decline.
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Ethereum is having difficulty keeping its position above the 26 EMA. The price may move toward the next significant support level at $3,380 which corresponds with the 50-day EMA (blue line) if a decline below this level indicates additional bearish momentum.
This could potentially unnerve investors as it would represent a significant decline from its recent highs. On the plus side, Ethereum might regain some bullish momentum if it can maintain above the 26 EMA level. The $3,700 resistance is still a crucial level to keep an eye on. If ETH breaks above this, it might test more resistance levels - possibly as high as $3,900.