As Bitcoin approaches all-time high, altcoins may not be able to achieve the same growth rate
A major technical turning point is approaching that could signal the end of Solana’s prolonged bearish phase. SOL is clearly showing bullish momentum, currently trading around $166 and breaking above its 50-day ($160) and 100-day ($158) exponential moving averages.
More importantly, as the 50-day moving average begins to converge with the 200-day moving average, a golden cross, which traditionally signals a shift in bearish momentum to bullish momentum, is occurring. Confirmation of a golden cross would be strong technical confirmation for long-term investors who have weathered months of market turmoil.
The last time SOL had such a crossover was before a multi-month uptrend. Given the steadily increasing volume and the relative strength index (RSI) rising towards 56 (still below overbought territory), there is still potential for further gains. However, bulls should still remain cautious. Just below the April swing high, the $180 level is a key resistance area.
The price failed to break above this area in the latest rebound attempt and hence it could face similar difficulties again. A break below $180 could trigger a drop towards the 100-day SMA, which is currently trading near $158.
As SOL approaches this level, traders should keep a close eye on price action, but this does not necessarily negate the bullish outlook as healthy pullbacks are a necessary component of sustainable growth. If a breakout above $180 is confirmed and trading volume increases, a move above the psychological $200 level is possible.
Bitcoin aims higher
Bitcoin is currently hovering around $109,900, just below the $112,000 peak, once again threatening to set new all-time highs. BTC remains firmly in bullish territory and is ready to test previously untested price levels again after a sharp rise from the $105,000 support level and maintaining momentum above the 50-day moving average, currently around $105,650.
The current price action is showing a traditional continuation pattern. Bitcoin rebounded strongly after a solid pullback to the 50-day moving average (EMA), forming higher lows and maintaining its trendline support. From this point of view, bulls are still in control and unless the momentum stalls, a breakout above $112,000 is more likely. However, the market's biggest obstacle may be psychological rather than technical. Historically, short-term tops are often foreshadowed by retail greed.
According to sentiment data, social media discussions about Bitcoin's all-time highs tend to peak before localized pullbacks. These spikes in attention reflect expectations for Bitcoin, and the market usually punishes them in the short term. Thankfully, the level of discussion around all-time highs remains high, but not excessively so.
It seems that despite the rising expectations, we have not yet reached the frenzy stage that usually leads to sudden withdrawals. In other words, Bitcoin has more room to rise before consumer enthusiasm leads to market imbalances. From a structural point of view, the 100-day moving average ($97,903) and the 200-day moving average ($92,303) continue to provide strong support for Bitcoin.
Shiba Inu Revival
Shiba Inu Coin (SHIB) is recovering as the coin approaches a major technical breakout. SHIB is currently testing the 50-day ($0.00001392) and 100-day ($0.00001417) exponential moving averages, an area of convergence that may determine whether SHIB remains sideways or breaks higher resistance.
SHIB is currently trading around $0.00001343 and has broken above its 26-day moving average. The reason the 26-day moving average breakout is so important is that it shows that early bullish momentum is building. Price breakouts above this moving average often signal larger rallies, especially when price is combined with movement through higher moving averages. This moving average has historically acted as a filter for short-term trends.
If SHIB can close firmly above the 100-day moving average in the coming sessions, the $0.00001554 resistance level could become its next target. If the momentum continues, $0.00002 could be a stretch target. However, it is not all bright at the moment. The volume has been declining, which suggests that the recent price gains are not backed by strong confidence.
Nevertheless, the technical structure looks promising: the RSI indicator is recovering from neutral territory, suggesting there is room for upside before overbought conditions set in. As SHIB continues to consolidate below strong resistance, traders should keep a close eye on EMA crossovers and volume levels.
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