Shiba Inu (SHIB) Plummeting Can Be Stopped, Dogecoin (DOGE) Getting Squeezed, Ethereum (ETH) Explosion Next?
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Shiba Inu has been on a downward trend, facing increasing pressure as it approaches a significant support level at $0.000019. This level, last seen in October 2024, represents a critical point that could either stabilize the asset or lead to further declines.
The asset’s price is struggling to gain momentum, trading below its key moving averages, including the 200 EMA. This weakness, coupled with low trading volume, has left SHIB vulnerable to further declines. Investors seem to be losing interest as the hype surrounding the token diminishes, leaving SHIB reliant on a key support level to avoid a deeper correction.
If Shiba Inu holds above the $0.000019 support, it could signal a potential reversal. A successful defense of this level might attract buyers, pushing the price toward the $0.000022 and $0.000025 resistance zones. This bounce would restore some confidence in the asset, offering hope for a short-term recovery.
The recovery would likely depend on renewed interest from the broader market and increased volatility, which SHIB historically thrives on. Without these factors, a bounce may lack sustainability.
If SHIB fails to hold above $0.000019, the price could drop significantly, potentially targeting $0.000015 or even $0.000013 as the next support zones. Such a decline would highlight the token’s inability to maintain critical levels, further eroding investor confidence.
In this scenario, SHIB could face challenges in regaining its position on the meme coin market, especially as competitors show stronger resilience and performance.
Can Dogecoin shift be next?
Dogecoin‘s price movement is signaling a potential shift as the asset faces a notable squeeze in its moving averages. This convergence of key indicators often precedes heightened volatility, which could either bolster DOGE’s current position or introduce new challenges for the asset.
DOGE is trading within a narrowing range, supported by an ascending trendline. However, as the 50-day and 100-day EMAs close in, the asset is caught in a compression zone. This squeeze typically reduces short-term volatility, but as the indicators tighten, it sets the stage for an imminent breakout or breakdown.
Related
The price remains above the critical $0.315 support level, which has served as a safety net during previous corrections. The 200-day EMA, located further below at $0.256, remains a key level to watch if DOGE fails to maintain its current trajectory.
The compression of moving averages signals the potential for a sharp move in either direction. If DOGE manages to break upward, it could test resistance levels near $0.380 and potentially extend its gains toward $0.400. Such a move would likely reignite interest in the asset, driving volume and momentum higher.
On the flip side, a failure to hold the ascending trendline could lead to a breakdown, pushing DOGE below $0.315 and toward the 200-day EMA. A breach of this support would indicate a loss of bullish control and could result in a more extended decline.
Ethereum’s breakout potential
Ethereum is currently showing signs of a potential breakout as its volatility compresses, signaling that a significant price move could be on the horizon. This volatility squeeze, highlighted by the convergence of key moving averages, often leads to a decisive price movement in either direction, giving traders a reason to keep a close eye on the asset.
ETH is trading within a tightening range, with the 50-day and 100-day EMAs gradually closing in. The current price level of around $3,940 is just below a descending trendline, which has acted as a resistance since mid-November. The compression between these key indicators hints at the possibility of heightened volatility in the near term.
Related
The critical levels to watch include the immediate resistance at $4,000, which aligns with the descending trendline. A breakout above this level could see Ethereum testing higher resistance zones around $4,200 and even $4,400, marking a return to bullish momentum.
However, if ETH fails to break out, the support at $3,700 could be the first line of defense. A breach below this level would likely see the asset revisiting the 200-day EMA at $3,133, which has historically provided strong support during downtrends. If this level fails, a deeper correction toward $3,000 might be in the cards, potentially eroding market confidence further.
The squeeze in volatility makes the upcoming price action for Ethereum highly unpredictable, yet promising, for traders. Whether ETH surges past the descending trendline or faces a pullback, the resolution of this compression is likely to bring substantial market activity. Investors should monitor these key levels closely and prepare for swift movements that could define Ethereum’s trajectory in the coming weeks. For now, all eyes are on the breakout.
