Shiba Inu Shows Signs of Reversal

Shiba Inu (SHIB) is showing potential signs of a reversal as whale activity increases. The notable uptick follows a struggle to regain momentum, with transaction volume surging to 3.73 trillion SHIB, a sharp rise from the previous low of approximately 895 billion SHIB. There were 170 large transactions in the past 24 hours, reaching a seven-day high.

The increased trading volume, especially among whale-tier wallets, is a positive indicator. It suggests that major holders may be optimistic about SHIB's current price level, as whale activity often signals heightened market sentiment. Sustained high-volume transactions could provide SHIB with the necessary purchasing power to maintain a bullish trend. The asset is attempting to stay above significant moving averages using the 50 EMA on its chart.

If SHIB maintains these levels, it could indicate preparation for a stronger upward movement. However, the likelihood of a bullish reversal hinges on sustaining its position above these averages, with potential upside targets near recent resistance levels. Meanwhile, SHIB's price movement remains susceptible to speculative trading and broader market conditions. While the rise in whale activity creates a positive outlook, SHIB requires ongoing support from both large and retail investors for a steady upward trajectory.

Solana Faces Divergence Issues

Solana (SOL) recently climbed to $180, nearing key psychological resistance levels. However, there's a concerning signal from the Relative Strength Index (RSI), suggesting a potential reversal or slowdown in momentum. Despite the rising price, the RSI is displaying a divergence pattern, failing to reach new highs.

This divergence often serves as a warning that the current upward trend might be losing steam, raising the risk of pullbacks. Traders may take profits as new buyers hesitate, leading to potential price retracement.

If SOL does decline, two crucial support levels are in focus. The first support level to monitor is around $161, where SOL previously consolidated before its recent rally. Should selling pressure increase, this level may offer initial support. The second key support is at approximately $144, represented by the 200-day moving average, historically a reliable price floor for SOL.

While SOL's recent bullish trend is strong, the RSI divergence serves as a technical warning of waning momentum. A deeper correction may occur if the price can't maintain above these support levels. Traders should watch for developments in RSI and volume dynamics in the coming days.

Bitcoin Breaks Through Key Resistance

Bitcoin finally broke past $71,000, a level not seen since 2021. This successful breakout reflects significant market optimism, marking one of Bitcoin's strongest breakouts in recent years. With ongoing price increases, Bitcoin appears poised to approach its all-time high.

The $71,000 level is vital as it instills confidence among institutional and retail investors. Bitcoin's rise above this point, following months of consolidation, signals a shift in momentum that could encourage further gains. Additionally, the chart shows Bitcoin has exited its previous downward trend channel, suggesting strong bullish control.

Traders should keep an eye on key price points in the upcoming days and weeks. The immediate resistance at $75,000 will be a short-term target; surpassing it could lead Bitcoin to unprecedented levels. Following this, the all-time high of $69,000 might soon be tested, with possibilities of reaching $80,000 and higher if bullish momentum persists. Notably, while the RSIs are rising without hitting overbought conditions, there’s currently no imminent risk of a significant decline in Bitcoin's value, allowing for continued growth.

This article was originally published on U.Today.