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Shiba Inu (SHIB) Rapidly Breaks Down, Ethereum (ETH) Loses Traction, While Solana (SOL) Presents Hidden Opportunity

Published 02/02/2024, 05:58 AM
Updated 02/02/2024, 06:00 AM
©  Reuters Shiba Inu (SHIB) Rapidly Breaks Down, Ethereum (ETH) Loses Traction, While Solana (SOL) Presents Hidden Opportunity
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U.Today - Shiba Inu has experienced a significant breakdown from its recent consolidation phase. The chart depicts a clear downward trajectory as SHIB failed to maintain its position within the ascending triangle pattern it had formed over the past few months.

The breakdown was signaled as SHIB prices breached the key support level at $0.000009, which had previously acted as a reliable floor for the price during consolidation phases. Following this, SHIB prices tumbled further, slicing through subsequent support near $0.0000087. This price action marked a decisive shift in market sentiment from accumulation to distribution.

SHIB/USDT Chart by TradingViewThe next support level to watch is at $0.0000082, where SHIB may find a temporary reprieve from the selling pressure. If this level fails to hold, the next critical support lies at $0.0000076, which could serve as the last line of defense before a more significant drop.

For a reversal to occur and for SHIB to regain its upward momentum, it would need to reclaim previous support levels and transform them back into supports. This would require a substantial influx of buying pressure, potentially sparked by positive developments within the Shiba Inu ecosystem or broader cryptocurrency market rallies.

The first sign of a possible reversal would be a return above $0.0000087, followed by a sustained move above the $0.000009 price level. A breakout above these levels, accompanied by increasing volume, could indicate that the downtrend is losing steam and that bulls are regaining control.

Solana paints reversal pattern

Solana has been developing a subtle yet potentially pivotal chart pattern. The asset has been tracing a slow and steady ascending channel, a formation that suggests a controlled and consistent uptrend. This pattern, characterized by higher lows and higher highs contained within two parallel trendlines, speaks to potential for continued growth.

The significance of this pattern lies in the momentum it could provide for SOL. Should the price action remain strong within the upper half of the channel, and particularly if it challenges the upper trendline, we could see Solana break through and embark on a more aggressive rally.

Such a bullish scenario would likely be supported by increased trading volume and positive developments within the Solana ecosystem, such as new project launches or updates that enhance network performance.

The immediate local resistance stands at around $55, and a confident push beyond this could confirm bullish sentiment. Inversely, if Solana's price dips below the channel's lower boundary, around $48, it could indicate that a bearish narrative is taking hold.

Ethereum momentum decreasing

Ethereum is exhibiting signs of waning momentum, as observed in recent price movements. The asset, which has long been considered the backbone of the decentralized finance sector, is facing a pivotal moment that could determine its trajectory for the coming weeks.

The provided chart illustrates Ethereum's struggle to maintain its grasp on the market. The price has been on a downward trend, edging closer to the local 26-day Exponential Moving Average. This level, currently near $2,465, is critical; if Ethereum fails to hold this line, we might see it descend to test the more significant 50 EMA, which stands around the $2,300 mark.

The 26 EMA serves as a short-term sentiment gauge, and its breach could signal a lack of immediate bullish support. Should this level fail to act as a springboard for price recovery, Ethereum's next stop could indeed be the 50 EMA. A breach below this longer-term moving average could potentially open the gates for a test of lower support levels, highlighting the need for investors to brace for more volatility.

Market participants are now recalibrating their expectations, understanding that the road to sustainable gains is a long-term journey.

This article was originally published on U.Today

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