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While the SHIB chart reveals an unmistakable bullish trend, the falling trading volume tells its own story. At first glance, the reduction in commercial activity could set off alarm bells. However, for Shiba Inu, this drop in volume could be paving the way for bullish momentum.
Digging deeper into the chart, SHIB’s recent price movements clearly underline an optimistic trend. This bullish trend is marked by higher highs and higher lows, presenting a promising outlook for those investing in or following the coin. However, when juxtaposing this bullish trend with the decline in trading volume, a paradox arises. Typically, falling trading volumes on a price rise could signal weakening momentum or an upcoming reversal. But the Shiba Inu narrative plays out a little differently.
SHIB’s low trading volume can be interpreted in a unique way. Lower volume, in this context, may be indicative of lower selling pressure. With fewer sellers flooding the market and selling their holdings, SHIB finds itself in a peculiar position. If the majority of orders in the market are buys, even with low overall volume, it means there is positive net buying pressure. This can lead to a supply and demand dynamic that favors price appreciation.
Another aspect worth mentioning is the SHIB price resistance. Even with decreased trading activity, the fact that SHIB price has not crashed but is showing an uptrend shows the prevalence of bulls over bears at the moment.
Ethereum seeks support
Ethereum, the foundational platform for countless decentralized applications and the second-largest cryptocurrency by market cap, has always caught the attention of the crypto industry. Current data suggests that Ethereum is in the midst of a correction phase, and the trajectory is pointing towards a crucial technical milestone: the 200 exponential moving average (EMA).
The 200 EMA serves as a vital tool for traders as it offers information about the underlying trend of the asset. By giving more weight to recent price data, the 200 EMA offers a clearer picture of price momentum and potential market direction. Historically, this moving average has often functioned as a solid support or resistance level. In the case of Ethereum, the 200 EMA is emerging as an important support point.
A closer look at the graph reveals several notable observations. Firstly, there was a notable spark in trading volume in recent months. These spikes often indicate strong buying or selling sentiment and can precede significant price movements. However, as the chart shows, Ethereum’s recent trading volumes have declined. Falling trading volume after a strong rally may be indicative of a possible slowdown in buying pressure, leading to price corrections, and that is precisely the phase Ethereum appears to be going through currently.
In terms of price analysis based on the current chart, Ethereum appears to be testing the waters around the 200 EMA, finding its footing after a period of increased volatility. If the 200 EMA holds firm, Ethereum could find the support needed to prevent a further decline and potentially pave the way for a rebound.
ADA hits roadblock
For Cardano (ADA), the 200 exponential moving average (EMA) resistance level has become a contentious point. At first glance, it appears that the ADA is struggling to overcome this overwhelming resistance. But digging deeper into the technicals, another narrative comes to light: ADA’s oversold position, particularly reflected in its Relative Strength Index (RSI).
Looking at the chart, it is evident that Cardano has made multiple attempts to break above the 200 EMA. Each attempt has encountered resistance, pushing the price down, forming what appears to be an impenetrable ceiling. This repeating pattern might lead some to assume that the 200 EMA is the main hurdle. However, the real story is in ADA’s RSI.
Cardano’s RSI is cruising through the upper levels, indicating a clear overbought state. This overbought scenario represents as much, if not more, a challenge than the 200 EMA resistance.
