The market may see an upswing in the coming days, but more momentum is needed.
After months of continued decline and sluggish trading activity, Shiba Inu is starting to show signs of a potential reversal. As of the time of writing, the trading price of SHIB is about $0.0000113, indicating that despite the overall weakness in the meme coin sector, a slight but noticeable local uptrend has emerged.
According to the chart, SHIB has been consolidating above a key support level, which is between $0.0000095 and $0.0000110. In recent weeks, this area has continued to absorb selling pressure, providing incentive for any rebound attempts. Additionally, the Relative Strength Index (RSI) has moved out of the extremely oversold area, currently trading close to 42, indicating that bearish momentum is finally weakening.
In past recoveries, these moving averages often heralded the beginning of counter-trend rebounds. If the price can retest and break through the next resistance level, particularly the 50-day moving average (EMA) around $0.00001286, this would support the notion that the asset is transitioning from a downtrend to a broader recovery phase.
Compared to the high volatility period earlier this year, trading volume remains relatively subdued, so traders should not expect explosive breakouts. However, the trend of higher local lows suggests that buyers are gradually regaining confidence. If SHIB can continue to rise and reclaim the range of $0.0000130 to $0.0000140, it will be able to demonstrate that the market is indeed entering a reversal phase, rather than yet another dead cat bounce.
Solana advances
Although Solana has not seen a golden cross (one of the technical catalysts traders commonly look for), it has quietly maintained an uptrend. A golden cross occurs when the 50-day moving average crosses above the 200-day moving average, which typically signals a significant change in market sentiment.
However, even in the absence of this technical validation, Solana's value can still rise, demonstrating the inherent resilience of the asset. SOL is still struggling to break through the $140 support level, with a trading price of about $147 as of the time of writing. Since June, its price structure has shown a series of higher lows, indicating that it is in a moderate accumulation phase and may develop into a long-term uptrend.
However, the asset's 100-day and 200-day moving averages are closely clustered in the range of $160 to $165, representing a difficult upper limit to breach. In the past quarter, Solana's rally has often been capped below $170, which can be explained by the convergence of resistance levels. The Relative Strength Index (RSI) is currently near 48, indicating that SOL is not yet overbought, and there is potential for growth if buying interest returns.
Another encouraging sign is that large holders have not been massively closing their positions, and trading volume has remained relatively stable during the recent pullback. Going forward, traders should focus on three key levels. First, to maintain the integrity of the uptrend, the $140 level needs to hold as a local bottom.
Speculation surrounding Bitcoin
Bitcoin is once again the focus of market speculation as it approaches a key resistance level that could determine its direction in the coming weeks. The chart shows that Bitcoin is consolidating below a downward trend line that has limited its gains since the last significant rally.
The current trading price of Bitcoin is approximately $107,400, approaching the range of $110,000 to $112,000, which could be an important step towards the eagerly anticipated breakthrough of $120,000. Currently, there are no clear signs indicating whether the market is bullish or bearish. Since hitting a low of around $82,000 in March, Bitcoin has created a series of new lows, indicating potential accumulation signs in the market.
This rise is primarily driven by momentum traders and short covering, rather than broad-based buying, as evidenced by the repeated pullbacks of the trend line, indicating a lack of confidence in the market and a lack of new capital inflows. A breakthrough of $112,000 would be crucial, as it would invalidate the downtrend pattern and pave the way for a surge towards the $120,000 range.
This level is not only a psychological benchmark but also extends the previously broken moving target. However, caution is necessary. The RSI is hovering around 51, and there is still significant room for volatility to the upside.
In the absence of new spot demand, the market may struggle to maintain a strong trend, as trading volume remains sluggish compared to the strong rallies of earlier expansion periods. If Bitcoin cannot break through the resistance level, it is more likely to retrace towards the 100-day moving average near $100,500. This could lead to a return of market sentiment to uncertainty.
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$SHIB $SOL $BTC
