U.Today – After a noticeable augment in September, it has been in a recovery phase for several weeks. Important moving averages on the chart converged, putting SHIB on the radar of traders watching for an impending spike in volatility. In the past, moving averages often indicated an impending augment in price volatility when they began to converge. Looking at the current chart, we can see that the SHIB moving averages, especially the 50-100-day and 200-day EMAs, are moving closer together, forming a technical setup that usually appears before a breakout.
Once the market has gained enough momentum to break above predetermined resistance levels or move toward support, this pattern often serves as a precursor to significant price movement. If convergence ends with a breakout to the upside, there could be a significant augment in SHIB prices. The key resistance levels are around $0.000018 and $0.000019.
A break of these levels could trigger more gains, encouraging more buying pressure. On the other hand, if a spike in volatility causes SHIB to decline, the asset needs to stay above the latest trendline support, which is located at $0.0000168, to maintain its bullish structure. The Relative Strength Index (RSI) is currently in the neutral zone, which adds to the optimism, indicating that SHIB has the potential to rise without immediately hitting overbought territory.
the upward trend has ended
There is no need to panic, even though Dogecoin has recently dropped 15% from its recent highs. In addition to being anticipated, this adjustment can be beneficial to the overall trajectory of the asset. Such price retracements are common during sturdy uptrends, allowing the asset to establish a stronger foundation for future earnings.
As you can see from the current chart, Dogecoin has seen significant growth in recent weeks, breaking through multiple resistance levels with significant force. To achieve a more sustainable growth pattern, it is necessary to lower prices because these types of sudden increases often result in overbought conditions. The classic technical setup, where an asset may reset before the trend resumes, appears to be consistent with the current retracement. A factor favoring the positive perception of this correction is the existence of support around the 50-day and 100-day EMAs.
These moving averages could provide Dogecoin with a solid base for a rebound as they are currently converging near essential price levels. According to technical analysis, these support levels can serve as starting points, increasing the asset’s ability to maintain an uptrend.
In terms of market sentiment, Dogecoin continues to see sturdy interest, which will likely lead to recent buying pressure once the correction calms down. Moreover, the Relative Strength Index (RSI) has moved away from overbought levels, suggesting that DOGE may now rise without immediately facing selling pressure.
BTC can still make up for losses
it has recently suffered a decline after briefly hitting the $70,000 level, but everyone is watching for a possible resurgence point near the 26-day exponential moving average (EMA). Bitcoin is currently trading around this key level, a move from here could determine whether the asset tries to reclaim $70,000 again.
In uptrends, the 26 EMA, which is marked with a green line on the chart, often serves as a energetic support level, sparking buying interest during corrections. Bitcoin has rebounded when it has fallen to this level in the past, and if the same support materializes now, there could be a significant near-term upside. It is essential to understand that while the 26 EMA provides a technical setup that can lead to a turnaround, this situation is not a surefire way to improve the situation.
Given the potential for additional declines if EMA support fails, Bitcoin’s recent downtrend warrants caution. BTC can then retest lower supports such as the 50 or even 100 EMA. However, Bitcoin could quickly regain momentum and make another move towards the $70,000 level if buyers get to the 26th EMA. This level has become a psychological barrier, and a sturdy close above it could fuel optimism and push Bitcoin to test its previous all-time highs.
To summarize, how Bitcoin reacts to the 26 EMA can determine its short-term course. While this level may spark a recovery, investors should be ready for any scenario.
