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As it seeks to reverse its recent downward trend, Solana recently bounced off its 200-day EMA, indicating potential strength. This development follows the discovery of SOL support at this important moving average, which has historically served as a reliable floor for the asset's price.
The $150 level appears to be the next important level to watch given the current technical setup. The bounce is accompanied by a strong downward trend in volume, indicating that selling pressure may be easing and opening the door for a longer-term upside move.
However, the convergence of the EMAs on the chart is notable. A phase of increased volatility is often preceded by a close convergence of moving averages, especially short-term ones. This convergence suggests that there may be a breakout in either direction while the market is still in a consolidation phase. In the long term, the threshold is $150 critical.
This is a psychological barrier, as well as a strong correlation with recent price peaks where bulls have encountered resistance. If Solana can break and hold above this level, it could signal the start of a new bullish phase and increase buying interest. If prices decline, the 200-day EMA will remain a critical support level. A break below this moving average could trigger a retest of lower levels, possibly shaking out weaker hands if Solana fails to maintain its current momentum.
Is Ethereum in danger of dying?
Potential formation of the death cross for Ethereum suggests that the market is about to reach a turning point. When a short-term moving average – usually the 50-day EMA – crosses below a longer-term moving average, such as the 200-day EMA, it is called a death cross.
This pattern is often interpreted as a bearish sign that there may be more downward pressure on the asset. Ethereum’s price action has been choppy and momentum has been waning over the past few weeks, according to the official chart. The 50-day EMA could confirm the death cross and point to a longer bearish trend for ETH if it breaks below the 200-day EMA.
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The EMAs are gradually converging. What is particularly concerning about Ethereum is the lack of momentum. ETH has struggled to maintain its upward trajectory after a strong rally earlier in the year, and recent price action reflects market weakness and uncertainty.
The bulls may not have the strength to push the price higher as the trading volume was also relatively low. The death cross could weaken sharply ETHs value and force it to retest lower support levels if that happens.
Investors and traders may begin to turn away from Ethereum in favor of safer or more promising investments. The death cross is a bearish signal, but it is important to remember that it does not always foretell more losses. Ethereum’s next move will also depend on external factors, overall sentiment, and market conditions.
Bitcoin remains relevant
Bitcoin still holds its ground, even though it may seem like the momentum is low; it is currently in a consolidation phase rather than a clear upward or downward trend.
Bitcoin has been trading in a tight range for the past few months, with little movement in either direction. But traders need to know that this sideways movement has created two critical price levels. The $68,000 level, which represents the upper limit of the current consolidation range, is the first important level to watch.
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A break above this barrier would signal a possible breakout and could herald a new bullish phase for Bitcoin. This level has been tested several times, making it an important resistance point that could determine the future price of Bitcoin. On the other hand, the lower boundary of the range is $52,900. In order to keep BTC from falling into a more obvious downtrend, this level has served as a solid support.
A deeper correction in Bitcoin could be triggered if it fails to hold above this support, which could add to market pessimism. The fact that Bitcoin is currently trading closer to the middle of this range indicates that the market is still unsure of where to go. A breakout in either direction could determine the course of Bitcoin's price in the coming weeks, so traders should keep a close eye on these two levels.