Enormous Shiba Inu (SHIB) Comeback, Bitcoin (BTC) at $58,000, but Don’t Celebrate Too Early, Ethereum Below $3,000 Again By U.Today

U.Today – Despite a significant price drop, it has finally entered recovery mode after breaking above $0.000016. At the current rate, we may see a long-term recovery. However, don’t celebrate too quickly. Several factors are influencing this reversal.

The oversold condition of the Shiba Inu is one of the main reasons for its recent surge. When an asset’s price falls too quickly, it becomes oversold, giving traders a buying opportunity. The oversold condition on the RSI made it a desirable buying option for the rebound.

Although there have been significant technical recoveries, these trends are usually temporary. The market-wide retracement is another factor that has helped Shiba Inu recover. Over the past few days, the cryptocurrency market has been under overwhelming selling pressure, causing various assets to fall significantly.

As the market started to show signs of recovery, SHIB entered a reversal trend. A significant drop in whale activity has been a major contributing factor to SHIB’s recovery.

However, the low to no whales in the region have reduced the selling pressure on SHIB. The lack of whales means there are plenty of cheap tokens available to buy, making it easier for smaller investors to invest without worrying about a major sell-off causing the price to fall further.

The bull woke up

Bitcoin bulls have finally come out of hibernation, pushing the digital gold up a little from its recent trading levels. The asset has broken through the $58,000 level, signaling a positive momentum turn. But don’t celebrate just yet; the resistance level at the 200 EMA is still ahead.

The recent recovery in Bitcoin prices is due to a market-wide relief bounce as major cryptocurrencies rallied from recent lows. Investors are becoming more optimistic following this positive trend, but it is important to remember that overall market sentiment remains cautious.

The 200 EMA is a major technical barrier for Bitcoin. This moving average has historically acted as a significant resistance or support level, depending on market conditions. The 200 EMA is currently just above the $58,000 threshold. For Bitcoin to continue its upward trajectory, it needs to break through this resistance level. Failing to do so could mean another pullback that would erase recent gains.

Getting into trouble

Ethereum has once again fallen below $3,000 as it failed to find enough support to continue its rise. With all on-chain and market indicators pointing to very lackluster activity among users and investors, it is fair to say that the asset is in a very troubled state.

The main cause of Ethereum’s problems is a lack of sufficient investor support: despite the asset attempting to reverse course and push above the crucial $3,000 level, it has encountered repeated resistance, suggesting a lack of buying pressure.

The overall market mood remains cautious, with investors not keen to put large amounts of money into ETH. Ethereum’s on-chain metrics paint a dire picture, with relatively few transactions on the network and declining user engagement. This drop in on-chain activity appears to be causing a decline in interest in Ethereum and its ecosystem.

Market indicators also show how troubled Ethereum is right now. The drop in trading volume can be attributed to a decline in interest from institutional and retail investors. Additionally, the RSI is still in oversold territory, indicating that although ETH is currently cheap, buyers have yet to gather.

This article was originally published on U.Today


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