Shiba Inu is currently in crisis, despite memecoins rallying in the market
The Shiba Inu (SHIB) is currently experiencing a significant decline in trading volume, hitting a four-month low after failing to gain momentum from the local support level it hit several days ago. The stagnation in trading activity could be attributed to the general lack of action in the cryptocurrency market, raising concerns about the token’s potential to resume its bullish trend in the near future.
The meme-inspired cryptocurrency landed in local support a few days ago, but it has struggled to progress since then. The lack of interest in buying sent trading volume down to its lowest level in months, signaling a potential loss of investor confidence. This development could be concerning for SHIB support which could have anticipated a rally with other meme tokens.
The cryptocurrency market has also seen a period of inactivity, which may contribute to the lack of momentum for Shiba Inu. With no significant catalysts in the market, many cryptocurrencies struggle to find a clear direction. This uncertainty could prevent new investors from entering the market and existing holders from increasing their positions, further compounding the problem.
Cardano finds another foundation
Cardano (ADA) is currently facing a fresh level of support, which could provide a basis for a potential reversal of the asset’s recent downtrend. The 50-day simple moving average (SMA) appears as a key support, although it is located significantly below the exponential moving average (EMA) of the same period. However, ADA’s recent price action reveals that it has lost three major support levels, prompting investors to question the token’s near-term outlook.
As of this writing, Cardano is trading at $0.37, having seen a steady decline over the past month. Meanwhile, ADA broke above the 50- and 200-day moving averages, as well as the lower boundary of a widening price range that guided the asset’s price trajectory. Those losses have raised concerns among investors, who are now looking for signs of a potential reversal.
The simple 50-day moving average, which has become a new support level for ADA, could serve as a turning point for the asset. If the token manages to hold above this support, it could signal a possible reversal, potentially attracting new buyers and inspiring renewed confidence among existing holders. However, this scenario remains uncertain given the general bearish sentiment in the market.
Solana trying to take a break
Solana (SOL) appears to be poised to emerge from a choppy market, with network activity across its ecosystem showing signs of recovery. This positive development could potentially lead to a broader reversal in the value of the token, as Solana goes through a rough patch following the FTX implosion. With a broader market recovery on the horizon, SOL may be well positioned to regain lost ground and resume its previous uptrend.
Over the past few months, Solana has fallen on hard times due to the impact of the FTX implosion, which caused the value of the token to plummet. After a period of substantial losses, SOL managed to recover some of its value, entering a choppy market characterized by unpredictable price swings.
Although this phase has brought uncertainty to investors, there are now indications that Solana’s network activity is on the rise, potentially signaling a return to a more stable market environment.
As Solana’s ecosystem network activity gradually recovers, the token should benefit from the broader market rebound that seems to be taking shape. This recovery could lift the value of SOL, allowing it to regain lost ground and resume its previous uptrend.