Is Shiba Inu Getting Ready for Death Cross? Critical Cardano Breakdown, Next Bitcoin (BTC) Support Level Revealed

Sat, 24/02/2024 – 0:30

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Contents

  • Cardano’s massive drop
  • Bitcoin is in battle mode

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Shiba Inu traders are eyeing the charts warily for the ominous technical formation known as the death cross. This event occurs when a short-term moving average, like the 50-day, crosses below a long-term average, such as the 200-day, and is often interpreted as a bearish signal.

Shiba Inu’s recent price action has shown a narrowing gap between these crucial moving averages, hinting at a possible convergence. The current proximity of the EMAs is indeed a textbook precursor for a potential death cross. As the moving averages draw closer, the likelihood of a bearish reversal increases, which could spell trouble for Shiba Inu’s near-term price trajectory.

SHIBUSDT Chart
SHIB/USDT Chart by TradingView

If the death cross materializes, it could signify a shift in market sentiment from bullish to bearish, leading to a potential reversal in Shiba Inu’s price. This could trigger a sell-off, as traders often take such a cross as a signal to exit positions, further exacerbating the downward pressure on the asset’s value.

If SHIB manages to defy the death cross’s bearish implications, we might see the asset stabilize and even appreciate in value, targeting resistance levels at $0.0000093. However, the bearish scenario suggests that a confirmed death cross may push SHIB’s price down, potentially leading to a retest of support at lower levels.

Cardano’s massive drop

Cardano has recently experienced a critical breakdown, breaching key support levels that previously bolstered its value. This downturn signals caution to investors as the digital asset grapples with bearish momentum.

The price of ADA has slipped below the significant support level at $0.58, a zone that has historically offered strong buying pressure. The break below this pivot point has opened the door to further potential declines, heightening the possibility of a continued downtrend.

Looking at the recent price action, the possibility of a further breakthrough cannot be ignored. If selling pressure persists and ADA is unable to reclaim its lost support swiftly, we could see the price target the next key support level at $0.54. This level must hold; otherwise, ADA might face a steeper decline toward the $0.50 psychological threshold.

However, it is not all doom and gloom for Cardano. If ADA can stem the current sell-off and stabilize, there is potential for a reversal. Such a bounce back would require ADA to reclaim the $0.58 level and establish it as support once again, potentially allowing for a rally back up to resistance levels around $0.60 and above.

In a bullish scenario, ADA would find enough buying interest near its current levels to initiate a recovery, pushing past immediate resistance levels and aiming for a retest of the $0.60 mark. This bullish case would be strengthened if ADA shows a strong response to the oversold conditions indicated by technical indicators like the Relative Strength Index (RSI).

Conversely, the bearish scenario sees ADA failing to regain its footing, resulting in a continued downtrend. A sustained move below $0.54 could see a test of the resilience of the $0.50 support, a critical level for maintaining any bullish structure that remains.

Bitcoin is in battle mode

Bitcoin has experienced turbulence after its recent rally. As traders and investors scrutinize the charts for clues to its next move, specific support levels come into focus, offering insights into where BTC might find its footing.

Examining the chart, Bitcoin’s immediate support is found at the $48,000 level, where it previously encountered buying interest. This zone aligns with the 50-day moving average, a commonly watched indicator that often acts as dynamic support in bullish trends.

If bearish momentum pushes the price below this level, the next critical support is expected at the $45,000 mark, which coincides with the 100-day moving average. This area is crucial; a decisive break below could signal a deeper retracement toward the $42,000 region, where the 200-day moving average lies.

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