Shiba Inu (SHIB) is facing a tough time as it breaks below key support levels. The meme coin is now trading at $0.0000133, down about 4% for the day. The most worrying sign is that the 50 EMA, a technical line that has been the last line of defense for SHIB in recent months, has been breached to the downside.
If SHIB does not recover quickly, it could test early 2025 lows in the $0.0000120-$0.000009 range. This would be a psychological blow to retail traders who have been hoping for a recovery. The volume profile is also grim, with selling volume rising and the RSI drifting lower, suggesting that momentum is currently favoring the bears.
If SHIB fails to reclaim the 50 EMA and push back above $0.0000145-$0.0000150, the chances of seeing $0.000009 increase. Adding another zero would be a major setback for investor sentiment. This kind of price erosion can quickly drain liquidity and cause even the most loyal retail investors to reconsider their positions.
A failure of $0.0000120 could lead to a sharp decline to $0.000009, turning the current bearish sentiment into outright despair. Meanwhile, Bitcoin is currently testing the 26 EMA as a potential support level after rising to new local highs around the $110,000 mark. The recent price action is offering a classic setup that traders should pay close attention to.
Bitcoin dropped from its latest peak and formed a series of red candles, signaling a significant loss of momentum. However, the emerging candlestick pattern is telling a different story. A notable lower wick on the most recent daily candle suggests that buying pressure is returning as Bitcoin tests the 26 EMA support zone.
This doji-like pattern typically indicates that buyers are ready to defend these levels as sellers lose their grip. If this reversal pattern holds, Bitcoin could quickly bounce back to retest the $110,000 range in the coming sessions or even push higher.
Shiba Inu faces critical support test
On the other hand, if support at the 26 EMA fails, there is a real possibility of a deeper pullback towards the 50 EMA, around $95,000. This would likely shake out weaker hands and establish a stronger base for future attempts at new highs. The next few days will be critical, and traders should watch price action and volume levels around the 26 EMA closely.
With this technical pattern in its favor, Bitcoin could be poised for another leg up if buying pressure picks up. Ethereum is showing a narrow ascending channel that has been gradually pushing prices higher. While this may seem bullish at first glance, it is starting to feel like a trap.
ETH is currently trading around $2,690 with resistance near $2,850 and support at the $2,500 mark. The channel itself has been developing over the past few weeks, with ETH steadily climbing higher. However, the volume profile is not exactly supportive of a breakout.
Volume has been gradually decreasing over the past week, which indicates that traders are not very confident. This declining volume is worrisome as it raises the possibility that the current channel is running out of steam. If ETH breaks below the lower trendline of this channel, we could see a quick drop to the $2,400 area, and if that does not hold, $2,100 is the next logical target.
On the other hand, if ETH can break through the $2,850 resistance, it could signal that the market is finally waking up and gearing up for another leg higher. In the bigger picture, ETH is still recovering from a long and painful downtrend, with the 50 and 100 EMAs showing some compression around the current price levels. This is a classic sign of indecision.
ETH is currently stuck, but it will break out eventually. Keep an eye on those key resistance and support levels, as ETH will likely set the tone for the next major move once it breaks out of this channel in either direction.