After a noticeable uptick in September, Shiba Inus have been in recovery mode for the past few weeks. The important moving averages on the chart have converged, drawing the attention of traders to SHIB as they anticipate an impending spike in volatility. In the past, moving averages often indicated an upcoming spike in price volatility when they began to converge. Looking at the current chart, we see that the SHIB moving averages, especially the 50-100 and 200-day EMAs, are converging to form a technical setup that usually occurs before a breakout.
When the market gains enough momentum to break through predetermined resistance levels or decline toward support, this pattern often serves as a prelude to a significant price move. SHIB’s price could rise significantly if this convergence leads to a breakout to the upside. Critical resistance levels are located in the area of $0.000018 and $0.000019.
The bullish rally could intensify if these levels are broken, which would add buying pressure. On the contrary, if a spike in volatility causes SHIB to decline, the asset must remain above the latest trend line support, which is located at $0.0000168, to maintain the bullish structure. The Relative Strength Index (RSI) is currently in the neutral zone, adding to the optimism, indicating that SHIB has the potential for upward momentum without immediately entering overbought territory.
Dogecoin’s uptrend has ended
There is no reason to panic, although Dogecoin has recently fallen 15% from recent highs. In addition to being expected, this correction can be beneficial for the overall trajectory of the asset. Such price corrections are typical during strong uptrends, allowing the asset to build a stronger foundation for future gains.
As can be seen from the current chart, Dogecoin has experienced significant gains in recent weeks, breaking through several resistance levels with significant force. A price pullback is necessary for more sustainable growth, as this type of sharp rally often leads to overbought conditions. The classic technical setup, where an asset can reset before resuming its trend, appears to be consistent with the current retracement. A factor contributing to the positive perception of this correction is the presence of support around the 50-day and 100-day EMAs.
These moving averages could provide Dogecoin with a solid foundation for recovery as they are currently approaching important price levels. According to technical analysis, these support levels can serve as a launching pad, increasing the asset’s ability to sustain an uptrend.
In terms of market sentiment, Dogecoin still has a strong following, which will likely lead to fresh buying pressure once this correction stabilizes. Additionally, the Relative Strength Index (RSI) has moved away from overbought levels, suggesting DOGE can now rise without immediately facing selling pressure.
BTC can still recover
Bitcoin has recently seen a decline after briefly hitting $70,000, but everyone is waiting for a possible recovery point near its 26-day exponential moving average (EMA). Bitcoin is currently hovering around this critical level, and a move from here could decide whether the asset attempts to recapture $70,000 again.
In uptrends, the 26-day EMA, which is represented by the green line on the chart, often serves as a dynamic support level that attracts buying interest during corrections. Bitcoin has bounced back when it fell to this level in the past, and if the same support materializes now, there could be a significant near-term rally. It is important to understand that while the 26-day EMA provides a technical setup that could lead to a reversal, this situation is not a surefire way to recover.
Given the possibility of further declines if EMA support fails, Bitcoin’s recent downward momentum warrants caution. BTC can then retest lower support levels such as the 50 or even 100 EMA. However, Bitcoin could quickly regain momentum and take another step towards the $70,000 mark if buyers enter at the 26 EMA. This level has become a psychological barrier, and a strong close above it could reignite 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 could trigger a recovery, investors should be prepared for any scenario.
