While SHIB’s chart shows an unmistakable uptrend, the declining volume tells its own story. At first glance, reduced trading activity might sound alarm bells. However, for Shiba Inu, this dip in volume may actually be paving the way for a bullish move.
Diving into the chart, SHIB’s recent price action clearly underscores a bullish trend. This uptrend is characterized by higher highs and higher lows, painting a promising picture for those invested in or following the coin. However, juxtaposing this uptrend with declining trading volume creates a paradox. Normally, declining volume in the face of a rising price would signal a weakening momentum or an impending reversal. But the Shiba Inu story is unfolding a bit differently.
Another noteworthy aspect is the resilience of SHIB’s price. Even with reduced trading activity, the fact that SHIB’s price has not collapsed, but is instead showing an uptrend, shows that the bulls are outnumbering the bears at this point.
Ethereum seeks support
Ethereum, the foundational platform for countless decentralized applications and the second largest cryptocurrency by market capitalization, has always attracted the attention of the crypto industry. Current data suggests that Ethereum is in the midst of a correction, and the trajectory is pointing towards a crucial technical landmark: the 200 exponential moving average (EMA).
The 200 EMA serves as an important tool for traders, providing insight into the underlying trend of the asset. By giving more weight to recent price data, the 200 EMA paints a clearer picture of price momentum and potential market direction. Historically, this moving average has often acted as a solid support or resistance level. In the case of Ethereum, the 200 EMA is shaping up to be a significant support point.
A closer look at the chart reveals several notable observations. First, there has been a noticeable spike in trading volume over the past few months. Such spikes often indicate strong buying or selling sentiment and can precede significant price movements. However, as the chart shows, recent trading volume has been on a downward trend.
Declining volume after a sharp spike can indicate a potential slowdown in buying pressure, leading to price corrections, and this is exactly what Ethereum appears to be going through.
In terms of price analysis based on the current chart, Ethereum appears to be testing the waters around the 200 EMA, finding its footing after a period of heightened volatility. If the 200 EMA holds, Ethereum may find the necessary support to prevent further declines and possibly pave the way for a rebound.
ADA hits a roadblock
The 200 exponential moving average (EMA) resistance level has become a point of contention for (ADA). On the surface, ADA appears to be struggling to break through this formidable resistance. However, a deeper dive into the technicals reveals another story – ADA’s oversold condition, particularly reflected in the Relative Strength Index (RSI).
Looking at the chart, we can see that Cardano has made several attempts to break above the 200 EMA. Each attempt has met resistance, pushing the price back down and forming a seemingly impenetrable ceiling. This repetitive pattern might lead some to believe that the 200 EMA is the primary obstacle. However, the real story lies in ADA’s RSI.
Cardano‘s RSI is floating in the upper levels, indicating a clear overbought condition. This overbought scenario poses as significant a challenge as the 200 EMA resistance, if not more so.
