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Market Watch: Solana Slips, XRP Eyes a Bounce, and SHIB Shows Signs of Life
The cryptocurrency market has been more cautious in recent months, with bearish outlooks returning and traders anticipating an increase in risk. Solana (SOL), XRP (XRP), and Shiba Inu (SHIB) are three cryptos that attracted our attention last week. Each has a different narrative from the chart. Let’s look at what’s going on for each coin and discuss what’s likely to come next.
Solana on the Edge: Will It Hold $100?
Solana is on a tightrope in the present. As it hovers around the $120 mark and the stock is close to losing control of the $100 mark, a support that it hasn’t been to in a long time. If investors are hoping to see a swift bounce, the price chart isn’t a great source of comfort.
One of the most important warning signs is the appearance of lower lows in the chart. These are usually the beginning of a long-lasting downward trend. The problem is that it’s caused by the increase in the volume of trading that is bearish. Bars with red volume are dominating green volume bars recently, indicating that sellers have dominated the marketplace. There isn’t much evidence of buyers backing at these levels, which raises concerns.
In terms of technical analysis, SOL has consistently failed to surpass its moving averages for short-term, such as the 50 and 26-day moving averages. The indicators continue to trend downwards, which is bolstering the bearish view. However, there is a sign that it appears that the Relative Strength Index (RSI) is now lower than 45, advancing towards the oversold zone. This could, in normal circumstances, signal the market to reverse, but there’s been no significant divergence in the bull market to back it up.
If the selling pressure persists at this rate, $110 may represent the last option to protect ourselves until we witness an increase in panic selling SOL lower than $100. If the worst-case scenario is true it could trigger the price falling to the $90 mark or perhaps lower.
XRP Setting Up for a Comeback?
As Solana is struggling, XRP is starting to demonstrate some promise for improvement. There are signs that the technical indicators are in line to make for a strong rise. Particularly, XRP recently went through its 200-day EMA and managed to remain over it, a sign of durability and strength.
The 200 EMA has historically served as a launching point to help bullish recovery, particularly if prices stabilise in the vicinity of the mark. As it has sunk to the $1.94 resistance, the XRP price has forged an upper low and is currently trading over the crucial psychological $2.00 level. It could be the first indication of a bullish market that is in development.
The volume profile adds some credibility in the direction of bullishness. While trading activity remains modest, we’re beginning to observe more activity during green sessions, suggesting an accumulation. If this pattern continues and the volume increases, XRP could break out from its current downward wedge pattern.
The key resistance levels to keep an eye on to keep an eye on are $2.28 as well as $2.37–former support zones which have turned into overhead resistance. If they break above them, it can open the way to a rise towards $2.60 or even more. The RSI is trending up and is moving towards the 50-level of neutrality which suggests that it is gaining momentum.
The short version is that XRP hasn’t come out of the woods however, the indicators indicate a possibility of an increase if the market stays in place and buyers’ demand continues to increase.
Shiba Inu Showing Signs of Life
Shiba Inu, the infamous currency that was once riding the waves of excitement but is now suggesting a potential revival to an upward trend. Following months of slow performances, SHIB is starting to show a few positive signals.
The most convincing of these are those that have a new higher low, which is a sign of a more technical trend that often signals the start of a trend reversal. That means that buyers are coming in earlier, taking on selling pressure, before the new lows have been reached. SHIB remains firmly in the $0.00001200 support area, which is historically been the main area of accumulation.
As it bounces off the level and regains its value, the currency has moved towards $0.00001244, which is a sign of renewed enthusiasm. The RSI is also beginning to climb out of market oversold, currently close to 44, indicating that the trend is shifting. The volume has increased on recent green candles, this is a positive indication that the growth is supported by actual market activity, not just a price spike.
There’s plenty of resistance in the future. The 50 EMA serves as a level as well. SHIB must break the mark of $0.00001300 in order to reach $0.00001357 in order to establish an optimistic outlook. An ensuing breakout may provide the opportunity for an even longer-term rally, but at the moment, being cautious is the key to success.
Final Thoughts
The market for crypto is changing as different crypto assets tell quite different tales. Solana is hovering close to the psychological mark, XRP seems to be in the process of preparing for a rebound, as well Shiba Inu is gradually clawing its way out of the deepest levels.
These trends could change rapidly, which is why being aware of volumes, the key levels of support/resistance as well as the general market mood is essential. If you’re looking for a trader to find opportunities or an owner, keeping yourself informed is the best way to stay ahead in situations like this.
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