U.Today – After a notable increase in September, the market has been in recovery mode for several weeks. The important moving averages on the chart have converged, putting SHIB on traders’ radars as they monitor an impending volatility spike. In the past, moving averages often indicated an impending spike in price volatility when they began to converge. Looking at the current chart, we can see that the moving averages of SHIB, particularly the 50-100 and 200-day EMAs, are moving together to form a technical pattern that usually precedes a breakout.
When the market gains enough momentum to break above predetermined resistance levels or decline toward support, such a pattern often serves as a prelude to a significant price movement. There could be a significant increase in SHIB prices if this convergence succeeds in producing an upward breakout. Crucial resistance levels lie around $0.000018 and $0.000019.
A bullish rally could be fueled if these levels are breached, which would encourage more buying pressure. On the other hand, if the volatility spike causes SHIB to fall, the asset must remain above the most recent trendline support located at $0.0000168 in order to preserve the bullish structure. The Relative Strength Index (RSI) is currently in a neutral zone, which adds to the optimism by indicating that SHIB has potential for upside momentum without immediately reaching overbought territory.
uptrend ended
There is no reason to panic even though Dogecoin has recently fallen 15% from its recent highs. In addition to being anticipated, this correction can be advantageous for the overall trajectory of the asset. Such price retracements are typical during robust uptrends, allowing an asset to establish a stronger foundation for future gains.
As the current chart shows, Dogecoin has seen a significant rise in recent weeks, breaking through several resistance levels with considerable strength. A pullback in prices is necessary for a more sustainable growth pattern, as this type of sharp rise often results in overbought conditions. A classic technical setup in which an asset may reset before resuming its trend appears to be consistent with the current retracement. A contributing factor to the positive perception of this correction is the existence of support around the 50 and 100 day EMAs.
These moving averages can provide Dogecoin with a strong base to recover from as they are currently converging towards important price levels. According to technical analysis, these support levels can serve as a launching pad, improving the asset’s ability to maintain its uptrend.
As for market sentiment, Dogecoin continues to have a strong following, which will likely lead to further buying pressure once this correction stabilizes. Additionally, the Relative Strength Index (RSI) has moved away from overbought levels, suggesting that DOGE can now move higher without encountering any immediate selling pressure.
BTC can still recover
has recently seen a decline after momentarily hitting the $70,000 mark, but everyone is watching for a possible resurgence point near its 26-day exponential moving average (EMA). Currently, Bitcoin is hovering around this crucial level, a move from here could decide whether the asset will attempt to reclaim $70,000 again.
In uptrends, the 26 EMA, represented by the green line on the chart, frequently serves as a dynamic support level attracting buying interest during corrections. Bitcoin has rebounded when it fell to this level in the past, and if the same support materializes now, there could be a significant rally in the near term. It is important to understand that even if the 26 EMA predicts a technical setup that could lead to a reversal, this situation is not a surefire way to recover.
Given the possibility of further declines if EMA support fails, Bitcoin’s recent bearish momentum calls for caution. Next, BTC could retest lower supports such as the 50 or even 100 EMA. However, Bitcoin could quickly regain its momentum and move towards the $70,000 mark if buyers enter at the 26 EMA. This level has become a psychological barrier, and a strong close above it could reignite optimism and push Bitcoin to test its previous all-time highs.
To summarize, how Bitcoin reacts to the 26 EMA could determine its short-term movement. Although this level could trigger a rally, investors should be prepared for either scenario.