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Shiba Inu recently flashed a warning indicator that the 21-day EMA has fallen below the 50-day EMA. Normally, the cross is not considered a type of signal that indicates serious problems with the asset. However, this clearly shows that the momentum of the Shiba Inu market is declining.
For now, SHIB is hovering around $0.000022, which seems to be taking a breather and consolidating. What happens next has a lot to do with the overall mood of the crypto market. The upcoming “halving” event has not yet shown its full effect. If that turns positive and funds start returning to cryptocurrencies, meme coins like SHIB could gain traction again.
However, SHIB itself does not have a strong basis for bullish development. The market doesn't really love the company on its own, so it will need a boost from the broader market to start rising again.
If SHIB starts to move higher, it will initially encounter resistance near the $0.0000276 level. Conversely, if the decline continues, the next important support is located around $0.00001635 (200 EMA). These are important levels to watch as they may determine the direction of SHIB in the coming days.
The future path for SHIB is not clear. While some hope that the halving effect will kick in and cause assets like SHIB to rise, Shiba Inu still does not provide fundamental value to investors and is based on the speculative nature of the crypto market. It only increases.
Ethereum retrace
Ethereum's mixed performance raises many questions, but the most important one at the moment is: Is Ethereum still trending upwards? Recent patterns in Ethereum's price movements suggest that Ethereum may be poised for a recovery.
On the chart, Ethereum is depicting “further lows.” Each drop in price is not as low as the last one, which can indicate strength and a potential uptrend. Additionally, there is consistent trading volume, indicating interest in buying and selling cryptocurrencies.
The RSI is approaching “oversold” territory. This often suggests that the asset is oversold, which means the price of the asset may rise.
Technically, all these signs point to a possible uptrend in Ethereum. However, technical analysis is not the most reliable method of analysis. For a real recovery to occur, there must be an underlying reason behind it, a change in market conditions or investor sentiment that drives buying activity.
The market is still reeling from the recent “halving” event, which unexpectedly did not inject as much purchasing power as expected. Hopes for a quick recovery are fading, and some investors' patience is wearing thin.
Ethereum’s immediate resistance is near $3,500, with the recent decline finding support near $2,700. If Ethereum can overcome the resistance, it could reclaim higher prices. However, if the market does not find any fundamental reason to buy, Ethereum could test the $2,708 support level again.
XRP's depressed state
XRP has certainly seen better times. While other cryptocurrencies have enjoyed a bull run since the beginning of this year, XRP's value has actually fallen by around 15%, making it one of the weaker players in the market.
The current price is hovering at a major support level, suggesting it may be undervalued. The big question is whether this is the reset XRP needs to bounce back, or whether it will continue to lag behind its peers. Currently, with the price sitting around $0.45, which has historically served as a solid floor for this asset, XRP feels like it is at a crossroads.
Of course, there is always the possibility of a reversal. By looking at the chart, you can spot potential turning points for XRP. If the currency can gather enough buying support to start rising, the immediate resistance to the beat will be around $0.58. On the downside, if the price breaks below the current support at $0.45, a further decline is possible.
XRP is cheap, but cheapness often does not correlate with value. It will take either a solid change in sentiment or resolution of legal issues to bring back buyers. Until then, choosing XRP as your go-to asset could spell trouble for your portfolio.
About the author
Armand Sirignan
