This breakdown implies that short-term bullish momentum is waning. The psychological level of $90,000 and the 50 EMA at $91,798 are the next significant support levels to keep an eye on. If buyers take action, these levels might serve as a buffer against additional drops. The last few sessions have seen a noticeable increase in selling pressure, according to volume analysis.
But the RSI, which is at 43 right now, shows that Bitcoin is getting close to oversold territory. Bulls can regroup during this dynamic, which frequently occurs before a possible relief rally or consolidation period. The larger picture shows that Bitcoin is still above its 100 EMA ($82,971), which has historically served as a solid support level during market downturns. The entire bullish structure will continue to exist as long as this level is maintained.
Rebounding above $97,000 would indicate a resurgence and potentially spark a new rally. Looking ahead, Bitcoin’s trajectory will depend on the market’s capacity to maintain important support levels. Should selling pressure persist, the $85,000 zone may be tested by a more severe correction. Bitcoin might, however, stabilize and try to recover $100,000 if buyers regain control, indicating a resurgence of market confidence.
When this level is broken, it indicates that ETH has lost a lot of momentum, which puts the market in jeopardy. The significant trading volume that coincided with the sell-off raises additional concerns because it implies that the market is actively participating in the decline. At $3,033, the 100 EMA provides the next important level of support.
Ethereum may experience additional drops and possibly test the psychological $3,000 barrier if it is unable to maintain this line. To restore investor confidence and pave the way for a possible rally, ETH must rise back above $3,800. At 35, the Relative Strength Index (RSI) suggests that Ethereum is getting close to oversold territory. Bulls may find some hope in this since relief rallies have historically resulted from similar circumstances.
Any upward movement, though, is probably going to encounter strong opposition at the $3,500 and $3,800 levels. In a larger sense, Ethereum’s market difficulties reflect the mood of the market as a whole, with riskier assets under pressure due to tightening macroeconomic conditions.
As selling pressure increases, traders’ increasing agreement about the possibility of additional downside is frequently indicated by this volume spike. More market participants may be adopting a bearish stance as a result of the increased activity during this downward move, which reflects a general lack of confidence in Solana’s performance going forward. This downturn has worrying ramifications.
Solana may test support at $150, a crucial psychological barrier, if the 200 EMA is breached, which could lead to even lower levels. The Relative Strength Index (RSI), which is currently at 31, is getting close to oversold territory but has not yet indicated a definite reversal. This allows for additional downward movement prior to a possible rebound.
Bearish sentiment on the main cryptocurrency markets exacerbates Solana’s difficulties on the larger market stage. Investor confidence may be further damaged if the 200 EMA is not broken, which could result in a protracted bearish phase. But if SOL can maintain this level, it may draw in investors seeking a long-term entry point, which could stabilize the asset.
This article was originally published on U.Today
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