Shiba Inu (SHIB) looks to be losing ground to bears in the cryptocurrency market’s tug of war between bulls and bears. The meme token recently suffered a setback when it was rejected at a significant local resistance level. Since then, it has partially reversed course.
Shiba Inu has had a small pullback following the resistance’s rejection. However, it’s crucial to remember that the retrace is not yet finished, suggesting that SHIB is not yet wholly under the bears’ control. The constant trading volume of the token indicates that a breakout is still conceivable. But the market is presently experiencing a period of stagnation, which raises questions about what will happen to SHIB in the near future.
Popular momentum indicator, the Relative Strength Index (RSI), is now in a neutral zone for Shiba Inu. This implies that there is currently no overbuying or overselling of the asset and points to a lack of consensus among market players.
Ethereum can still rally
The second-largest cryptocurrency by market value, Ethereum (ETH), could be about to start another ascent. Despite the previous period of stabilisation, recent market dynamics imply that Ethereum’s present position may be preparing the way for a new leg higher.
The asset’s general ascent is a key element supporting the positive situation for Ethereum. Like many other cryptocurrencies, Ethereum has been recovering after the May market crisis. The fact that the cryptocurrency has been making higher lows suggests that buyers are entering the market at steadily greater prices, indicating a significant level of demand.
An further noteworthy development is the potential for a volatility squeeze. The recent fall in Ethereum trading volume suggests that market players are taking a wait-and-see stance. As the market abruptly changes from a period of low volatility to high volatility, this pattern frequently results in a substantial price movement, also known as a volatility squeeze.
A decreasing trade volume and Ethereum’s continuing climb may provide a favourable volatility squeeze, driving ETH prices higher. However, market players should be aware that this scenario depends on Ethereum continuing its upward trajectory and the market’s optimistic mood. The trajectory may change if one or both of these variables changed.
Polygon among winners
Polygon (MATIC) has demonstrated extraordinary resiliency in a market when virtually every asset has been trading sideways or declining in value. A recent break above the 50 Exponential Moving Average (EMA) of the native token of the Ethereum scaling solution is a positive indicator that may portend the start of a new rising trend.
A popular technical analysis indicator for determining medium-term trend orientations is the 50 EMA. A breakout over this level is sometimes interpreted as a sign of bullish strength and may pique further interest from buyers. This recent advance above the 50 EMA in the case of MATIC is promising and may pave the way for additional price growth.
The positive outlook is also supported by Polygon’s Relative Strength Index (RSI), which has climbed over 50. The momentum oscillator known as the RSI gauges how quickly and dramatically prices move. A bullish phase is often indicated by an asset’s RSI value being over 50, while a bearish phase is typically indicated by a value below 50.
Even with these encouraging indicators, caution is urged. The price of MATIC has only narrowly (around 2%) above the 50 EMA. There is a chance of a potential downward reversal given this little advantage. Investors have to keep a careful eye on this development since a break of the 50 EMA would immediately turn the short-term view from optimistic to negative.
