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Ethereum (ETH) Just Lost Important Level, Solana (SOL) Drops to Vital Level, Shiba Inu (SHIB): End or New Beginning?

Published 12/24/2024, 08:01 AM
Updated 12/24/2024, 12:45 PM
© Reuters.  Ethereum (ETH) Just Lost Important Level, Solana (SOL) Drops to Vital Level, Shiba Inu (SHIB): End or New Beginning?
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U.Today - The 50 EMA, a crucial technical level that serves as a solid support for bullish momentum, has been breached by Ethereum. The asset is at a turning point, and the sustainability of its bullish trend is called into question, as is its capacity to sustain its recent recovery.

When this level is lost, the market structure is weakened, and bears may take control. The RSI's declining momentum, which has further dipped into neutral territory, indicates less buying pressure, which is also consistent with the drop. Ethereum may further decline to test the 100 EMA somewhere around $3,100 if it is unable to swiftly recover the 50 EMA.

If this level is broken, the sell-off could continue toward the 200 EMA at $3,044, the final significant support area before a more significant correction. Between $3,100 and $3,400, Ethereum may trade sideways as it enters a consolidation phase. This situation would be indicative of market hesitancy as traders watch for more powerful catalysts to move ETH in either direction.

Ethereum's upward trajectory could be reaffirmed if there is a rapid recovery above the 50 EMA and more volume. If momentum picks back up, Ethereum might rise toward $3,800. In this scenario, $3,500 might be the next resistance level. The trading sessions that follow will be very important for Ethereum.

To prevent more sell pressure, the 50 EMA must be recovered. However, ETH may enter a more severe correction phase if there is persistent pessimism and no buying support. Ethereum is currently at a turning point, and how well it can recover from its losses will dictate its course for the coming year.

Solana under pressure

As its price approaches the 200 EMA, Solana has reached its limits. The 200 EMA, which is currently trading at $175, may be a key indicator of whether Solana can stabilize or if it faces more downward pressure following a protracted decline.

The 200 EMA has historically served as a buffer against bearish trends. Before trying to recover, SOL may indicate a possible reversal or, at the very least, a period of consolidation if it can maintain above this level. The price may return to resistance levels at $195 and $215 if it bounces from this level.

Solana's present downward trend and rising selling volume, however, cast doubt on its capacity to hold onto this support. Conversely, the next important support area is located close to $150 if Solana is unable to hold the 200 EMA. Accelerated selling may result from a breakdown below $175, which would push the price into unheard-of territory for this cycle. In this case, Solana might take longer to regain its bullish trajectory, and market confidence would probably be further undermined.

A possible relief rally is suggested by the RSI's indication of oversold conditions. A warning sign, though, is the weak buying volume at the present time. If buyers do not intervene quickly, the bearish narrative might take over and cause more losses. The price movement of SOL will be very important in the days ahead. Maintaining any hope of a recovery requires holding above the 200 EMA.

To assess market sentiment, traders should keep a careful eye on the $175 level and look for any notable shifts in volume and RSI. Solana is currently at a pivotal point in its history, and its future will depend on its capacity to retain important support.

Shiba Inu at critical level

With its price hovering around the 200 EMA, a level frequently used as a long-term trend indicator, Shiba Inu is nearing a pivotal turning point. Currently circling around $0.000020, this area represents the asset's overall inability to maintain the momentum of the most recent bull run, in addition to serving as a crucial support level.

Given that higher moving averages have been breached, SHIB has entered a bearish phase, raising questions about its short-term recovery prospects. The downturn toward the 200 EMA essentially reverses the upward trend of SHIB, indicating that selling pressure has replaced speculative euphoria. Significant psychological and technical barriers for the token could be revealed if the price drops below this level, which could indicate additional losses and possibly push it down to $0.000018 or even $0.000016.

If SHIB is able to maintain its position above the 200 EMA and recover to $0.000022, it may generate fresh interest and offer some respite to the beaten-down price of the token. SHIB views this stage as a chance for a fresh start, as well as the conclusion of its recent rally. The course of its future will be determined by clear action taken from this point.

SHIB could resume its upward trajectory if speculative interest picks back up. If not, there is a chance that investor confidence will decline even more and lower levels will become the new focus. Determining whether SHIB's story is one of recovery or ongoing decline will be determined in the days ahead.

This content was originally published on U.Today

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