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Solana could be aiming at the $150 price threshold once again as the price starts showing reversal potential after reaching the 200 EMA. The trend flattening is often one of the first signs of an upcoming price reversal. However, it is important to stay cautious as in the midterm, Solana is still in a downtrend.
The SOL/ETH chart indicates that Solana has been steadily declining over the last several months, but there may be a shift in store as of late. The price has bounced back somewhat after touching the 200 EMA, which has served as a support level. This suggests that bullish momentum may be developing.
Near the oversold area at about 35 is where the RSI is currently trading. This could mean that buyers are about to intervene and that the selling pressure is lessening. The MACD histogram also exhibits indications of a possible bullish crossover. An increase in purchasing activity is indicated by volume analysis, which may be good news for Solana.
Given the large uptick in volume bars, it appears that traders are beginning to stockpile SOL at these lower price points. Despite these encouraging indicators, it is critical to recognize the difficulties Solana may encounter while recovering.
Ethereum's reversal potential
Ethereum could be forming a ground for a price surge as the second-biggest cryptocurrency enters the falling wedge pattern formation in addition to relying on the 50 EMA. At this technical threshold, Ethereum could easily perform a reversal.
The falling wedge pattern is usually interpreted as a bullish reversal pattern indicating that an upward movement may be approaching and that the downtrend may be coming to an end. According to Ethereum's recent price action, the pattern's peak, which typically comes before a breakout, is getting closer. The blue line on the chart, the 50 EMA, has served as an important level of support. The fact that Ethereum's price has repeatedly rebounded from this level suggests that there is significant buying interest in this vicinity.
Ethereum's chances of a bullish breakout from the falling wedge pattern are greatly increased if it can hold this support. The relative strength index or RSI is currently trading close to 46, suggesting that Ethereum is neither overbought nor oversold.
Ethereum has the freedom to rise from this neutral position without being under a lot of selling pressure. Volume analysis indicates that buying activity is gradually increasing, indicating that traders are starting to accumulate Ethereum at these prices. The possibility of a bullish reversal is further supported by the fact that this accumulation phase frequently comes before a notable price movement.
Shiba Inu's last hope?
Despite the enormous 25% price drop we saw on Shiba Inu, there is still some hope for a reversal at around $0.000018. However, a quick glance at the trading volume of Shiba Inu clearly shows that it is not the most favorable asset on the market right now.
Recently, Shiba Inu's price dropped by 25%, indicating a significant decline. SHIB is now at a critical support level at $0.000018 due to the drop. This stage may serve as a possible turning point in the event that buyers intervene. Nevertheless, SHIB's trading volume has been comparatively low, suggesting that there isn't currently a lot of buying interest.
One significant element that could impede a speedy recovery is this low volume. Right now, the relative strength index (RSI) is circling the oversold area. This can suggest that a reversal is imminent and that the selling pressure may have been overdone. Nevertheless, a reversal cannot be ensured by the RSI alone — higher buying volume is required.
Resistant moves have been made by the moving averages, especially the 50 EMA. In order to verify a reversal, SHIB must make a significant volume breakout above these moving averages.
Even though the Shiba Inu market is currently difficult, there is some hope because of the support level at $0.000018. We could witness a 20% increase if SHIB can maintain this support and return toward the moving average.
An important role is also played by the larger cryptocurrency market. SHIB may benefit if Ethereum and Bitcoin begin to rebound.