The cryptocurrency market has been showing mixed signals, with several key assets like Shiba Inu (SHIB), Dogecoin (DOGE), and Bitcoin (BTC) experiencing significant price movements and technical shifts.
Shiba Inu (SHIB) recently formed a mini death cross, a technical pattern that may indicate a continuation of its downward trend. The crossover between the 26-period Exponential Moving Average (EMA) and the 200-period EMA is often seen as a short-term bearish indicator. Although this is not as commonly watched as the 50 EMA-200 EMA death cross, it still signals potential for further downward pressure on SHIB’s price.
Currently, SHIB is trading around $0.00001942, showing a modest recovery from its recent lows. However, the road ahead remains challenging, with several resistance levels looming. The first short-term resistance stands at $0.0000206, where the 100 EMA lies, followed by a stronger resistance at $0.0000217, which will be critical for SHIB to overcome in order to halt the current decline. The most significant level of resistance was previously at $0.0000223, where SHIB lost momentum.
On the downside, the price could face support at the recent low of $0.0000180. If selling pressure increases, the next support levels to watch are $0.0000175 and $0.0000160. A break below the latter could lead to a steeper decline. The mini death cross suggests that unless SHIB can regain the $0.0000217 level, it could struggle to sustain any recovery and may continue its downtrend in the near future.
After a prolonged period of price declines, Dogecoin (DOGE) seems to have found support around the $0.033 level. This support, coupled with the 100 EMA, has helped prevent further declines. DOGE has been trading between $0.033 and $0.034, showing signs of stabilization. However, in order for the price to shift to a bullish trend, it must break through several resistance levels.
The first resistance is at $0.035, followed by a more critical level at $0.036, where DOGE has faced rejection in the past. The Relative Strength Index (RSI) for DOGE is showing signs of stabilization, indicating that selling pressure has started to ease. Volume has also decreased, suggesting that the bearish momentum might be slowing down. If DOGE can maintain its position above the 100 EMA, it may have a chance to recover slowly, although a full reversal may take time.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is currently struggling to break through key resistance levels, and its price action indicates a short-term downtrend. After reaching a local peak of $109,459, Bitcoin’s price has since dropped to $104,600, confirming a lower high and signaling a potential continuation of the bearish trend.
However, Bitcoin remains above critical support levels, with the 50 EMA at $101,400 and the 100 EMA at $92,464 acting as potential support zones. If the price continues to trade above these levels, Bitcoin could avoid a significant decline. Nevertheless, Bitcoin needs to overcome resistance at $104,600 to negate the downtrend and potentially retest the $109,459 level. A drop below the key support levels could signal further weakness, with a possible retest of the $99,394 zone and even a more severe correction toward the 200 EMA at $82,610.
