Contents
- Ethereum’s attempt to break through
- Shiba Inu’s first reversal sign
Crypto Market Review, October 24
Arman Shirinyan
The second largest cryptocurrency finally makes a breakout attempt after month of sideways
The last few weeks were tough for the cryptocurrency market, as most assets entered and did not leave local opponents despite negative net flows on exchanges and apparent signs of accumulation. Today, however, some assets are showing some important reversal signs.
Ethereum’s attempt to break through
On October 23, Ethereum had a strong rally that pushed it right to the local resistance level of the 50-day moving average. Unfortunately, today bears became more active and are now pushing the second largest cryptocurrency on the market to new lows. However, the breakthrough attempt shows that bulls can still take control.
Prior to the breakout, Ethereum entered the consolidation channel, which could be an important sign of an upcoming reversal as the asset has avoided further downward pressure and successfully started to move sideways, which is a positive factor for an asset aiming for a reversal.
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The next target for Ether will be the breakout through the 50-day moving average, which acts as a resistance level for it. For more than a month, the moving average served as a guide for Ethereum which could not find enough support from investors to make a breakout attempt. Fortunately, the fading volume profiles show that Buterin’s coin is slowly coming out of the bears’ clutches.
Shiba Inu’s first reversal sign
A fading volume profile is not just a prerogative of Ethereum. According to the same indicator, SHIB bears are also losing momentum in the market despite the continued downtrend on the memetoken.
Over the past 20 days, Shiba Inu has lost more than 14.5% of its value, coming perilously close to its lowest level of the year. However, the declining volume in the market gives investors some hope of an upcoming reversal.
The fading trading volume is a general sign of an upcoming reversal as traders tend to lose the power to push assets in a particular direction as time passes and funding does not increase. Unfortunately, data shows that there are no new inflows into the market and SHIB will simply enter a prolonged consolidation rather than bounce upwards.
In general, the markets move in uncertainty waiting for macro events to occur that greatly affect the cryptocurrency industry. FOMC meetings and CPI reports are two main sources of volatility for the cryptocurrency today.
Most experts still believe that the market should not expect a reversal until early 2023, given the troubled nature of most world economies. Since Bitcoin and the cryptocurrency market in general are highly dependent on the performance of the stock market, recovery of the US economy and easing of monetary policy will most likely affect digital assets in addition to stocks.
