Bitcoin
This Shiba Inu (SHIB) Pattern Changes Everything, Bitcoin (BTC) Could Return to $58,000, Cardano (ADA) Trend Stabilizes
Arman Shirinyan
Market entering reversal mode, but there are still some problems ahead
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Shiba Inu is currently displaying a descending triangle pattern on its trading chart, a development that could reset its market behavior in the coming weeks. This pattern is significant as it typically signals a potential continuation or reversal, and for SHIB the risks are particularly high.
The descending triangle has been forming over the past few months, characterized by lower highs and a flat support line. This pattern suggests that each rally faces strong selling pressure, which is progressively pushing the price lower. SHIB is currently hovering around the $0.0000237 mark with immediate support at $0.000021.
SHIB/USDT Chart by TradingView
If this support level fails, SHIB could see a further drop to $0.00002, a critical psychological and technical barrier. The outcome at this juncture could lead to two distinct scenarios: a refutation, where buyers intervene strongly, pushing the price up again, potentially retesting higher resistance levels; or a collapse, where the price could fall below the $0.00002 mark, triggering a decline in the token.
A break below the triangle could significantly undermine confidence, leading to a potential sell-off. On the other hand, a strong refutation and recovery from the support line could reignite interest and potentially start a new bull cycle for SHIB.
Volume trends and market sentiment will play critical roles in determining the outcome. Recent trading volumes have been relatively low, which often indicates a lack of conviction among traders.
Bitcoin Tests
Bitcoin is testing the 26-day exponential moving average (EMA) and there is notable resistance that BTC is struggling to overcome. This resistance could eventually push Bitcoin price lower, potentially targeting the $58,000 support level.
The $58,000 mark is significant as it previously acted as a robust support level for Bitcoin. Observers note that the price is also close to the 100-day EMA at around $60,000, which adds an additional layer of psychological and technical significance. These EMAs are essential in defining medium- and long-term market trends and sentiment, and their current levels suggest a bearish outlook for the cryptocurrency.
Volume analysis shows somewhat neutral to descending volume, which currently does not indicate strong potential for a optimistic reversal. Typically, a bullish reversal is accompanied by a significant increase in volume, indicating strong buying interest that could drive the price higher. The absence of such volume dynamics suggests that the market may not yet be ready to push the price back above the $60,000 mark.
Furthermore, Bitcoin’s failure to break the 26 EMA and 50 EMA reinforced bearish sentiment among traders. These failures are critical as they usually indicate the direction the market may take in the short term.
Cardano neutral position
Cardano is showing signs of a stabilization trend after a period of volatility. Recently, ADA price movement has stabilized, indicating a potential stabilization phase that could set the stage for future moves.
ADA is currently hovering around the mid-April support level, which has been tested several times without a decisive breakthrough. This level of support proved resilient, suggesting that it could serve as a solid foundation for a potential upward recovery.
However, during its last rally to local resistance at $0.51, ADA failed to break out, facing a downturn influenced by a rude cross between the 50-day and 100-day exponential moving averages. Such a crossover is typically interpreted as a sign of accelerating negative trends in the market.
Cardano price action was somewhat subdued following this bearish indicator, with no significant signs of a bullish reversal immediately. The most likely scenario for ADA, given current market conditions and technical setup, is the continuation of the sideways trend. This would imply that the price oscillates between known support and resistance levels without significant directional momentum.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, it focuses on news, articles with in-depth analysis of cryptocurrency projects, and technical analysis of cryptocurrency trading pairs.