Shiba Inu has finally entered comeback mode after moving above the $0.000016 level, despite a substantial price drop. At the current rate, we might see a long-term recovery. However, don't celebrate too early; several factors are contributing to this reversal.
The severely oversold condition of Shiba Inu is one of the main causes of the recent surge. An asset is oversold if its price has dropped too much and too quickly, giving traders a chance to make a purchase. Due to being oversold on the RSI, SHIB became a desirable bounce buy option.
SHIB/USDT Chart by TradingView
Although there has been a significant technical recovery, these trends are usually temporary. The market-wide retracement is another factor that has helped Shiba Inu recover. Overwhelming selling pressure has been applied to the cryptocurrency market in recent days, resulting in large declines in a range of different assets.
SHIB entered the reversal trend as the market started to show signs of recovery. The notable lack of whale activity is a major contributing factor to SHIB's recovery.
Selling pressure on SHIB, however, was lessened because there were fewer or no whales in the area. Because there are many inexpensive tokens available for purchase due to the lack of whales, it is simpler for smaller investors to invest without worrying that significant sell-offs will drive the price even lower.
Bitcoin bulls woke up
Bitcoin bulls have finally returned from their hiatus, helping the value of digital gold climb a bit higher than its recent trading levels. The asset successfully breached the $58,000 mark, signaling a positive shift in momentum. However, we cannot celebrate just yet. The 200 EMA resistance level is still on the horizon.
The market-wide relief rally that saw major cryptocurrencies rise from their recent lows is responsible for the recent recovery in the price of Bitcoin. Investors are feeling more optimistic as a result of this positive trend, but it is important to remember that overall market sentiment is still cautious.
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The 200 EMA is a major technical barrier for Bitcoin. This moving average depending on the state of the market has historically served as a significant level of resistance or support. The 200 EMA is currently sitting slightly above the $58,000 threshold. In order to sustain its upward trajectory, Bitcoin has to breach this resistance level. If it doesn't, there might be another decline that wipes out your recent gains.
Ethereum stays in trouble
Ethereum is crawling below $3,000 again after the asset could not find enough support to continue moving upward. It is safe to say that the asset is in a very problematic state, with all on-chain and market indicators showing extremely dull activity among users and investors.
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The main cause of Ethereum's problems is the absence of significant investor support. The asset has encountered resistance on multiple occasions despite attempts to reverse course and break above the crucial $3,000 mark, suggesting a lack of buying pressure.
The general mood of the market is still cautious, and investors do not seem eager to put a lot of money into ETH. Ethereum's on-chain metrics present a sad picture. There have been comparatively few transactions on the network along with a decline in user engagement. It appears that interest in Ethereum and its ecosystem has diminished based on this decline in on-chain activity.
Market indicators also show how problematic Ethereum is right now. The decrease in trading volume can be attributed to a decline in interest from institutional and retail investors. Furthermore, the RSI is still in the oversold area, suggesting that although ETH is currently cheap, buyers are still not flocking to it.