Cardano (ADA) found itself within the boundaries of a symmetrical triangle, a crucial pattern that usually precedes significant price movement. However, the direction of this breakout remains unknown and could swing either way. Based on the model parameters, it looks like the breakout should occur in about three days.
As the price swings between the converging trend lines of the triangle, traders and investors are eagerly awaiting. The impending volatility could potentially provide profitable trading opportunities or signal a strategic shift for long-term holders.
While the impending breakout could go either way, it is important to note that Cardano previously found considerable resistance around the $0.3 level. Therefore, an upside break could retest this resistance. However, the lack of selling pressure suggests the possibility for Cardano to breach this barrier and establish new support levels.
At the same time, a break to the downside cannot be ruled out. ADA may continue to face challenges and see downsides ahead of a substantial recovery, primarily due to the current low trading volume. Low volume often indicates a lack of investor confidence or interest, which can lead to weak breakouts or breakouts.
Whales wake up on Shiba Inu
The Shiba Inu landscape was changed recently when a crypto whale took a major step by transferring four trillion SHIB (valued at approximately $29.8 million) across eight newly created addresses. The intriguing factor is that this whale is the largest holder of SHIBs, possessing an incredible 101.47 trillion SHIBs. This represents approximately $756 million, or approximately 10.15% of the token’s total supply.
This whale had not made any major transactions for 610 days until that time, indicating a strategic shift in the management of the holder’s portfolio. The activity adds a layer of intrigue given the history of the whale; they initially bought 103.33 trillion SHIB with just 38 ETH ($14,000), then sold 603 billion SHIB for 2,411 ETH ($9.6 million). Additionally, they transferred 1.25 trillion SHIB ($8.77 million) to Coinbase in 2021.
Although the precise motivation for these transfers remains unclear, the market impact of such whaling activity is undeniable. Whales have a huge influence on the price dynamics of cryptocurrencies due to the huge volume of tokens they control. Their trades can drive volume, liquidity, and sometimes volatility in the market.
Shiba Inu is currently struggling with a resistance level around $0.0000075. Despite multiple attempts, it failed to break through, leaving the community waiting for a catalyst that could alter the token’s trajectory. Although not guaranteed, recent whale movements could be the change in momentum required. They could increase trading volumes and liquidity, potentially helping SHIB in its fight against the resistance level.
PEPE holds on for his life
In the volatile meme coin landscape, PEPE has managed to hold on to its value through thick and thin, primarily due to an important price threshold – the 50-day exponential moving average (EMA). Acting as a robust support level, the 50 EMA is currently working like a magnet, attracting a substantial concentration of buy orders.
The unique feature of the EMA is its sensitivity to recent price changes, making it an essential tool for traders looking to capture short-term trends. At this point, the 50 EMA prevents the price of PEPE from falling further by providing a stable platform from which buyers can regroup and fend off selling pressure.
Another factor at play is investor psychology. Many investors, especially those who have bought at higher levels, are reluctant to sell at the breakeven point. They remain bullish, holding onto their PEPE tokens in anticipation of future earnings, further strengthening the token to its current levels.
However, a caveat is in order here. While the 50 EMA is holding strong for now, a break below this critical support level could trigger a so-called “death spiral”. In such a scenario, selling pressure could intensify as traders strive to cut their losses, and the 50 EMA could move from a support level to a resistance level. It would then be much more difficult for the price of PEPE to recover in the short term.