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Shiba Inu (SHIB): 250% Needed to Reach ATH, Will Ethereum (ETH) Hold Above $3,000? Solana (SOL) Might Enter Price Correction

Published 12/11/2024, 01:01
Updated 12/11/2024, 05:15
© Reuters.  Shiba Inu (SHIB): 250% Needed to Reach ATH, Will Ethereum (ETH) Hold Above $3,000? Solana (SOL) Might Enter Price Correction
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U.Today - Even with the recent strong rally, Shiba Inu still has a long way to go before hitting its all-time high (ATH). To reach its ATH level, which it last reached at the height of the last bull market, SHIB would need to see a further 250% price increase. Given the renewed interest in altcoins and favorable market conditions, this ambitious goal might not be unachievable, but it will take a lot of momentum.

Examining the price chart of SHIB, it is evident that recent bullish activity has raised the token above a number of significant moving averages, a positive technical indicator that frequently signals additional upward movement. In particular, SHIB is now getting close to resistance around its current high levels after managing to break through the 50-day and 100-day EMAs. Prior to the next leg up, there may need to be some consolidation or a slight pullback, as the RSI indicator is also in overbought territory.

SHIB must hold support levels around the most recent breakout points, especially close to $0.000021, if it is to continue on its recovery path. It might continue to draw buying interest if it can stay above this range. A key psychological level and a significant step on the path to its ATH, $0.000030, is where additional price targets are located. Strong market sentiment and perhaps additional external catalysts, like more on-chain activity or encouraging developments in the larger cryptocurrency space, are necessary for achieving a 250% rise to reclaim its all-time high.

SHIB's recent breakout is encouraging, though, and if the altcoin growth trend continues, it may pave the way for a significant recovery. Investors will be keeping an eye on SHIB for the time being to see if it can sustain its growing momentum and get closer to its ATH.

Strategic Ethereum threshold

Ethereum recently broke through the $3,000 barrier, but it is now difficult to maintain this level due to increased selling pressure from key players. Ethereum's capacity to hold onto this crucial price point may determine its immediate future trend given the notable whale activity that has been offloading ETH in recent days.

For Ethereum, the $3,000 mark has long served as a psychological and technical barrier, drawing both buying and selling activity. The upward momentum is currently complicated by the presence of significant whale selling pressure, as ETH is trading at about $3,134. The market has become more cautious as a result of the recent sales by major holders, and some investors may be leery of excessive gains.

Ethereum's recent breakout above significant moving averages has propelled the current rally, according to the daily chart. Now that the 50, 100 and 200-day EMAs are below the price, they might provide support if ETH pulls back from its peak. Nevertheless, the RSI indicator, which is getting close to overbought levels, indicates that the upward momentum might be waning, which is frequently a sign of a price correction or consolidation.

Ethereum may reach the next important support level, which would be around $2,770 and correspond to the 200-day EMA if it is unable to maintain above $3,000. In the event of a pullback, this region could serve as a cushion. On the plus side, holding levels above $3,000 might rekindle optimism. If momentum picks up, ETH might retest higher resistance levels and perhaps even the $3,500 region.

Solana's correction incoming

Despite recent strong gains that have seen Solana hit highs above $210, there are indications that a price correction may be imminent. SOL's chart displays signs of slowing momentum following a significant rally, which is a common indication of possible price exhaustion. These indicators could point to a brief retracement prior to a subsequent leg up, even though the overall trend is still bullish. Upon examining the daily chart, it is evident that Solana has risen above important moving averages, with the 50-day and 100-day EMAs hovering around $162 and $158, respectively.

The main support in the event of a pullback could be these levels. For SOL's trend, a correction to these levels would probably be beneficial, allowing buyers to reenter the market at more advantageous prices. Additionally, as buying pressure temporarily lessens, assets frequently experience some consolidation or a pullback in overbought territory, which the RSI indicator has entered.

This could mean a pause or minor retracement in the upward trend rather than a bearish reversal. An area of recent consolidation, $177, provides immediate support if Solana does retrace. If the price drops below this level, it may reach the 50-day EMA at $162 ,which would be a critical support zone to keep the bullish structure in place. Given the strong uptrend, a break below this could indicate a deeper correction, though this seems less likely.

This content was originally published on U.Today

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