U.Today - Shiba Inu has not been immune to wild price swings we saw in the last few days. A look at price chart indicates a sharp downtrend, with the coin breaching the 50-day exponential moving average, a critical indicator watched by traders for signs of long-term price direction.
After a period of consolidation, price has plummeted, breaking through the 50 EMA, a move that traditionally signals a bearish trend. The token's trajectory suggests it could soon encounter a crucial support level. If SHIB finds substantial support and trading volume around this level, it may very well initiate a rebound, breathing life into the hopes of its holders.
However, the recent price action has brought dangerously close to the lower 26 EMA, threatening to push it into a more extended downturn. The current support level to watch is around the $0.00000950 mark. If SHIB maintains above this threshold, it might indicate a potential recovery phase.
Conversely, a drop below this point could trigger further sell-offs. Resistance levels are now pegged near the $0.00001000 mark, which if breached upward, could pave the way for an optimistic trend reversal.
The on-chain metrics offer a glimmer of hope, with a notable uptick in large transaction activities. This could suggest that "whales," or large holders of SHIB, are taking advantage of the lower prices and trying to dollar cost average their holdings.
Shiba Inu's price has displayed robustness in past market cycles, remaining above key technical support levels. This enduring strength suggests that while the price has seen corrections, the underlying market dynamics still harbor a potential for recovery. Additionally, as the broader crypto market braces for potential ETF approvals, positive sentiment from such events could spill over, benefiting altcoins like SHIB.
Bitcoin leading party
The recent chart analysis for Bitcoin reveals a notable volume surge, signaling a robust trading activity and heightened interest in the primary cryptocurrency. This surge could be attributed to the mounting speculation regarding the potential approval of a spot Bitcoin ETF, a development that is keenly anticipated by market participants. Such an approval is expected to introduce a seismic shift in the market structure, potentially ushering in a new wave of institutional investment and retail interest.
While Bitcoin's price continues to exhibit strength, it is a different story for the altcoin sector. Many alternative cryptocurrencies are struggling under the weight of market uncertainty. The vast expanse of the altcoin market is witnessing a substantial sell-off, caused by a combination of factors including profit-taking, risk aversion and a pivot toward the relative safety of .
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 rally back to BTC when confidence in the broader crypto market wanes. This behavior is reflected in the resilience of Bitcoin's price, maintaining a bullish outlook despite broader market headwinds.
The current scenario serves as a stark reminder of Bitcoin's market dominance and the influence it holds over the sentiment and capital flow within the crypto space. Should the spot Bitcoin ETF receive approval, it could further solidify Bitcoin's status and trigger a reallocation of capital that might exacerbate the altcoin sell-off.
This article was originally published on U.Today