Will Shiba inu (SHIB) Lose $0.00002? Bitcoin (BTC) Plummets After Hitting $70,000, Solana (SOL) Might Be Safest Asset on Market's Top Right Now

Wed, 06/12/2024 - 00:30
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Bitcoin surged above $70,000 yesterday once again, driving the hopes and dreams of the cryptocurrency market up. However, things have changed very rapidly as the selling pressure spiked, leading to a drop below $69,000 for the digital gold.

After hitting this milestone the chart shows that Bitcoin saw a significant decline. Selling pressure has suddenly increased, which could indicate that investors are taking profits following the recent rally. 

BTC/USD Chart by TradingView

As a result, traders may be concerned as BTC is finding it difficult to hold its position above important support levels. Bitcoin is currently trading just above its 50-day EMA at about $68,000. The next support level, which is located around the 200 EMA, may be tested if the price is unable to hold this level of support. 

Bearish divergence is also visible on the RSI, suggesting that the momentum may be waning. Overall the long-term trend for Bitcoin is still positive despite this setback. Perhaps the market was just correcting itself before the next leg up, which is why the recent decline was so beneficial. Investors should continue to exercise caution though and keep an eye out for any new indications of weakness in price action.

Solana's surprising stability

Solana is probably one of the few assets on the market with a stable position right now, safely trading at the 100 EMA, at around $150. Despite the overall negative sentiment around the asset, SOL is still in an uptrend if we look at the long-term trend, and the current support level may become a foundation for a future reversal.

As it remains stable at $150 and lines up with the 100 EMA, the chart demonstrates Solana's resilience. This suggests a level of strong support that may serve as a springboard for further gains. Solana has succeeded in keeping a more stable trading range, in contrast to many other cryptocurrencies that are seeing considerable volatility. 

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In spite of the recent market decline, Solana's price action is still bullish when analyzing the long-term trend. The fact that the asset has managed to hold above the 100 EMA shows that the bulls are still in charge. A more neutral outlook is also offered by the RSI, which indicates that there is potential for upward movement without becoming overbought. 

Traders' interest is consistent even though the trading volume is lower than it was at previous peaks. The notion that Solana might be preparing for a comeback is supported by the volume's consistency,  particularly if the mood of the market as a whole improves. 

Shiba Inu has failed to hold the 100 EMA support level and has opened below it during this trading session. The fact that the price of the meme token is moving below this moving average raises substantial concerns and may be a negative signal for investors. The next support level for the asset is not far away but is located below a crucial resistance level.

Shiba Inu in trouble

Shiba Inu is struggling to find support above the 100 EMA, which is bad news for the asset. It appears that selling pressure has increased as the price breaks below this support level, bringing it closer to the next major support level, which is located around $0.000019. 

The RSI is currently in the vicinity of the oversold area, suggesting that the selling pressure might continue. Nevertheless, if buyers intervene to take advantage of the lower prices, the oversold situation could also create the chance for a brief rebound. 

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The volume profile indicates a decline. It may be difficult for SHIB to mount a significant recovery in the near future since lower volume in a downtrend usually signals waning buying interest. The decreasing volume adds credence to the meme token's pessimistic forecast. 

The next significant support, which is located around the 200 EMA, might be tested in less than a week if the current selling pressure persists.