© Reuters. Shiba Inu (SHIB) price will reach important support level
U.TODAY – The past few days have not been spared from wild price fluctuations. A look at the price chart indicates a sharp decline, with the coin breaking the 50-day exponential moving average, a key indicator watched by traders for signals of long-term price direction.
After a period of consolidation, the price fell, breaking the 50 EMA, a move that traditionally signals a bearish trend. The trajectory of the token suggests that it may soon encounter a key support level. If SHIB finds enough support and trading volume around this level, it could start a rally, reviving the hopes of its holders.
However, recent price action has come dangerously close to the lower 26 EMA, threatening to push it into a more extended bearish trend. The current support level worth watching is around $0.00000950. If SHIB remains above this range, it could indicate a possible recovery phase.
Conversely, a decline below this point could trigger further selling. The resistance level is now pegged near the $0.00001000 mark, which if broken on the upside, could pave the way for a reversal of the optimistic trend.
With a significant increase in large transaction activities, on-chain metrics offer a glimpse of hope. This suggests that “whales,” or large holders of SHIB, are taking advantage of lower prices and trying to dollar cost average their holdings.
Shiba Inu price has demonstrated strength in past market cycles, remaining above key technical support levels. This sustained strength suggests that although the price has seen a correction, the underlying market dynamics are still likely to improve. Additionally, as the broader crypto market prepares for potential ETF approval, such events could spread positive sentiment, which would benefit altcoins like SHIB.
team leading
Taking center stage, showing remarkable resilience and strength. As altcoins continue to bleed, losing value amid market fears, BTC stands as the dominant force, potentially on the verge of a significant market disruption.
Recent chart analysis of Bitcoin reveals a significant increase in volume, indicating a strong trading activity and growing interest in the primary cryptocurrency. This surge can be attributed to increased speculation regarding the possible approval of a spot Bitcoin ETF, a development that is eagerly awaited by market participants. Such approval is expected to trigger a major change in the market structure, potentially ushering in a new wave of institutional investment and retail interest.
While the price of Bitcoin continues to display strength, it is a different story for the altcoin sector. Many alternative cryptocurrencies are struggling under the burden of market uncertainty. Vast expanses of the altcoin market are seeing substantial selling, driven by a combination of factors including profit taking, risk aversion, and a bias toward relative safety.
This divergence in market behavior underscores Bitcoin’s perceived role as a digital safe haven or “digital gold” in times of turbulence. Traders and investors often return to BTC when confidence in the broader crypto market wanes. This behavior is reflected in the resilience of Bitcoin’s price, which maintains a bullish outlook despite broader market headwinds.
The current scenario is a reminder of Bitcoin’s market dominance and its impact on sentiment and capital flows within the crypto sector. Should the spot Bitcoin ETF be approved, it could further strengthen Bitcoin’s position and trigger a reallocation of capital that could exacerbate altcoin sell-offs.
This article was originally published on U.Today
Source: www.investing.com
