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Shiba Inu Loses Vital Support: Critical State of SHIB, Ethereum (ETH) to Hit $4,000? Solana (SOL) Might Show Massive Reversal Soon

Mon, 3/06/2024 – 0:30

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Contents

  • Ethereum stays put
  • Solana’s reversal plan

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Shiba Inu is on the verge of losing some important ground for the price, and it may lead to some serious issues for the token. However, there are some support levels below the aforementioned support. Luckily, the volume is descending, which, in case of a dropping price, is a good sign for the asset.

There is a worrying trend in the SHIB technical indicators. The price has been attempting to maintain a higher level above $0.00002476 while testing the lower bounds of its current trading range.

https://www.tradingview.com/
SHIB/USDT Chart by TradingView

This scenario implies the possibility of a further decline in SHIB should it be unable to hold its position above these support levels. Another bearish signal on the chart is the descending triangle pattern, which usually indicates that the downward trend will continue.

Regarding volume, this bearish scenario of decreasing trading volume is encouraging. The price may short-term stabilize, if lower volume on a downward trend typically signifies waning selling pressure. But SHIB will require a large boost in buying interest — which is not there at the moment — for a meaningful recovery.

Bearish signals are also visible in the relative strength index, which is hovering near the oversold area at 44. This suggests that there may be room for a price bounce, but the next move will largely depend on how the market feels overall. Investors need to monitor the $0.00002310 support level closely.

Ethereum stays put

Ethereum could be on the verge of hitting $4,000 as the price remains stable and does not drop below the bottom of the trading channel at around $3,700. Luckily, that fact brings us closer to the potential return above the $4,000 threshold and the upcoming surge of inflows to Ethereum. But, of course, always keep in mind the broader market perspective.

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A break through this barrier could lead to a more significant decline that could take the price down to the next major support level, which is $0.00001940 (200 EMA). Based on the chart, Ethereum appears to be stabilizing, which is encouraging.

The price has been holding its position above the crucial $3,700 support level. The medium- to long-term trend can be clearly seen using the 50-day, 100-day and 200-day moving averages. At the moment, the 50-day moving average is serving as a support level. It is common for a consolidation pattern to form near the upper end of a trading range to precede a breakout in the recent price action.

Solana’s reversal plan

Solana could be closer to a reversal than you may think. The price of the asset has secured a placement at around 26 EMA, which acts as a trendline support for now. Hopefully, the price of SOL will be able to regain some momentum and finally show us the possibility of a reversal.

The price action in Solana is creating what appears to be a bullish setup on the chart. Around $163, the 26-day moving average (EMA) is a strong support level that the price is presently trading above. This support has remained stable, halting additional drops and indicating that buyers are intervening at this point.

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As the price rises further, the 50-day moving average is beginning to turn upward, which may indicate the start of a new upward trend. Before confirming a long-term bullish reversal, Solana still has some ground to cover as seen by the downward trend of the 200- and 100-day moving averages.

As is often the case prior to a possible breakout, volume analysis reveals a decline in trading volume during the most recent consolidation phase. Relative strength index (RSI) values around 50 indicate that the asset is neither oversold nor overbought.

The price could move in either direction, as indicated by this neutral position, but the current support levels offer a promising future. In order to verify a reversal, Solana must make a strong break above the $170 resistance level.

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