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Shiba Inu (SHIB) Becoming Bullish, Ethereum (ETH) Price Screams Rally Continuation, Bitcoin (BTC) Not Giving up Market Dominance

Published 01/25/2024, 07:58 PM
Updated 01/25/2024, 11:30 PM
© Reuters Shiba Inu (SHIB) Becoming Bullish, Ethereum (ETH) Price Screams Rally Continuation, Bitcoin (BTC) Not Giving up Market Dominance
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U.Today - Shiba Inu currently displays an ascending triangle pattern on the SHIB/USDT chart. This technical formation is widely recognized and could be a signal to a significant price surge for the meme.

An ascending triangle is characterized by a flat upper resistance line and a rising lower support line. This pattern suggests that buyers are gradually gaining ground against sellers, as each dip is bought up at a higher level than the previous one, indicating accumulating pressure for an upward breakout.

SHIB/USDT Chart by TradingViewFor Shiba Inu, which has been lingering in a period of relatively nonexistent activity, this pattern could serve as massive fuel for volatility in the near future. Recent market conditions have seen a decline in interest toward legacy meme coins, with SHIB being no exception. The lack of significant developments within the Shiba Inu network has contributed to the muted activity around this cryptocurrency.

In contrast, the majority of the action in the meme coin sector has been taking place on the Solana network. This platform has become a hotbed for the deployment of new meme coins, which are exhibiting far greater volatility than those on the Ethereum network, where Shiba Inu resides. The brisk activity on Solana contrasts sharply with the sluggishness observed in Ethereum's meme coin space, drawing in traders and investors looking for quick gains and high excitement.

Ethereum's correction is temporary

The Ethereum market is currently exhibiting a correction, and there are patterns that suggest a rally may not only be on the horizon but could also be in continuation. The asset has recently experienced a sharp downturn, movement that is readily apparent on intraday timeframes. However, such stark movements are often precursors to reversals, signaling that Ethereum could be gearing up for an upswing.

A closer look at the charts shows Ethereum's price action respecting a series of key technical indicators which, together, build a case for potential upward momentum. The asset has been tracing back to touch base with its moving averages, a behavior that is typically followed by a rebound, as these levels can act as dynamic support zones.

This corrective phase is noteworthy, especially considering the robust rally Ethereum enjoyed in the preceding weeks. Corrections are a natural and healthy part of any asset's price trajectory, allowing for consolidation before the next leg up. For Ethereum, the current pullback could be shaking out weak hands, setting the stage for a stronger rally propelled by a more committed investor base.

Bitcoin's dominance not going anywhere

After a brief breach below the 50-day EMA — a critical indicator of medium-term market sentiment — Bitcoin has clawed its way back above this pivotal level. This move indicates a bullish signal for market observers, suggesting that Bitcoin is not yet ready to relinquish its market dominance.

However, the ascent above the 50 EMA has not been met with the kind of vigorous momentum that bulls would hope for. The growth has been moderate, hinting that Bitcoin might encounter selling pressure as it ascends. This is not unusual on the crypto markets, where significant moves often face immediate resistance as traders take profits and skeptics cast doubts.

The recent price action has been a roller coaster for Bitcoin, which saw its value tumble from highs around $47,000 to lows near $41,000. This downturn briefly shifted the spotlight to altcoins, which seized the moment to stage local rallies. The diversification of gains across the crypto spectrum during Bitcoin's periods of weakness is a trend that has become more pronounced as the overall market matures.

Yet Bitcoin's ability to push back above the 50 EMA serves as a reminder of its underlying strength and the confidence investors have placed in it. Despite the opportunity for altcoins to rise, Bitcoin remains the anchor of the crypto market, with its moves often dictating broader market sentiment. This recent rebound above a crucial technical level could be interpreted as Bitcoin's silent assertion that it is not ready to give up the throne just yet.

This article was originally published on U.Today

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