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Investor optimism was sparked by Shiba Inu recent successful exit from its consolidation phase. Despite this, there has been no notable acceleration in price developments, suggesting that the recovery has stalled. Examining market dynamics and on-chain data helps identify possible causes of this slowdown.
A crucial measure of Shiba Inu market activity is the amount of large transactions and general network activity. Trading volume has declined recently from previous peaks. Although the number of large trades has increased, it remains well below the levels seen during major bull runs, indicating that whales are not as active in pushing prices higher.
Additionally, there are conflicting sentiments in the profitability data of SHIB holders. Although the majority of addresses holding SHIB are in the money, it is possible that the remaining large group of holders at higher price levels will sell their holdings during this rally, which would increase market pressure to sell. The general state of the market could also be the reason for the poor performance of the Shiba Inu.
Bitcoin, Ethereum and XRP are among the assets that have made headlines and attracted investor interest. Altcoins like SHIB have fewer opportunities to shine due to the large inflows and market interest currently seen in these large-cap assets.
The charts show that SHIB has managed to hold above important support levels near $0.00002300, but volume is still quite low. There is not enough buying pressure to support a long-term rally. Without large inflows or increased on-chain activity, it could be difficult for the price of SHIB to continue rising.
The primordial level of Bitcoin
THE walk is paying particular attention to Bitcoin as it hovers around the psychological and technical threshold of $100,000. A subtle but alarming signal appears in the form of RSI divergence, although current bullish momentum hints at the possibility of a breakout.
There is currently a divergence between price and momentum, as indicated by the Relative Strength Index (RSI), a momentum oscillator. Although Bitcoin price has reached all-time highs, the RSI has remained essentially stagnant or even falling, suggesting that the strength of the rally may be fading.
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A trend reversal is frequently preceded by this divergence, suggesting that selling pressure may soon apply to the asset. RSI divergence has a history of accurately predicting impending corrections.
For example, a similar divergence was observed before a significant market correction during the period when Bitcoin reached its all-time highs at the end of 2021. Investors should be cautious, even if this does not guarantee an immediate decline. The 50-day EMA is currently trading within the $75,000 range, where Bitcoin can test support levels if a correction takes place.
The potential of Toncoin
Crypto enthusiasts take note Toncoin because it seems ready for a possible rally. While it is still relatively cheap compared to the top performers on the market, recent market and technical trends indicate that the coin may have more to offer than initially thought. At the time of writing, Toncoin price is hovering around $6.13, showing steady recovery from recent lows.
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A notable increase in trading volume, which could suggest renewed investor interest, supports this level. While there is potential, price action has yet to decisively break through important resistance levels, indicating that buyer confidence is still subdued. Toncoin’s relative undervaluation is a key justification for its possible rally. Toncoin the recovery has been slower than that of assets like Bitcoin or Ethereum, which have seen strong rises.
This lag in performance could make it a candidate for a late rally, when money moves into cheap assets. Toncoin’s technical indicators also suggest a neutral but hopeful outlook. The asset is not yet overbought, as indicated by the RSI’s continued healthy range and recent recovery from the 50-day EMA, which indicates strong support.
This makes greater upward momentum possible. Even though it is unlikely to achieve the explosive returns of high-end assets, Toncoin still has the potential to generate significant returns. If market sentiment continues to improve, a move above $6.50 could pave the way for a test of the $7.00 resistance with the potential for further gains.