Market
Why SUNDOG Price Surge May Signal a Bull Trap Ahead
Tron-based meme coin Sundog (SUNDOG) has surged by 8% in the past 24 hours, breaking above a falling wedge pattern it had traded within since September.
However, BeInCrypto’s analysis of the meme coin’s technical setup indicates that the recent rally could be a false breakout. This assessment dives into the reasons behind it and outlines key signals for SUNDOG holders to watch closely.
SUNDOG’s Surge May Cause a Bull Trap
An assessment of the SUNDOG/USD one-day chart has revealed that the meme coin broke above the upper line of its falling wedge during Thursday’s intraday trading session. This pattern is formed when an asset’s price moves between two descending trend lines, with the upper line acting as resistance and the lower line as support.
A breakout above the wedge’s upper trendline is a bullish move. It suggests buyers are gaining strength over sellers and hints at a sustained price increase. However, a closer look at some of SUNDOG’s momentum indicators suggests that this rally may be a false breakout, potentially setting up a bull trap.
A bull trap occurs when an asset’s price briefly breaks above a key resistance level which would usually signify a positive shift in trend. However, instead of continuing the uptrend, the price falls again, ‘trapping” those who bought in on the bullish signal.
The setup of SUNDOG’s Super Trend Line is a notable indicator of this potential bull trap. At press time, the red line of the indicator rests above SUNDOG’s price.
The Super Trend indicator tracks the overall direction and strength of an asset’s price trend. It appears as a line on the price chart that changes color according to the trend’s direction: green for an uptrend and red for a downtrend.
When the Super Trend line appears below the asset’s price, it indicates an uptrend, suggesting bullish momentum may persist. On the other hand, when the Super Trend line turns red and appears above an asset’s price, bearish pressure is strong.
Additionally, the negative readings of SUNDOG’s Balance of Power (BoP) confirm the possibility of a price reversal in the near term. As of this writing, the meme coin’s BoP stands at -0.82 despite its price uptick.
This indicator measures the strength of buyers versus sellers in the market. A negative BoP suggests sellers are in control and attempting to push the asset’s price downward.
SUNDOG Price Prediction: If Retest Fails…
A combined reading of SUNDOG’s Super Trend and BoP indicators suggests that its breakout above the upper line of the falling wedge may occasion a bull trap when the retest attempt of the resistance line fails due to strong bearish sentiments in the market.
At press time, SUNDOG trades at $0.13. A reversal of its uptrend due to strengthening bearish pressure may see its price drop to $0.09, where support lies. However, if the uptrend persists, SUNDOG’s price may rally toward $0.20.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Solana (SOL) Price Could Achieve Its Highest Point in 8 Months
Solana (SOL) price is showing some promising signs, with the coin up almost 20% in the last week, but caution is required. While recent indicators reveal strong upward momentum, the sustainability of this trend remains in question.
The current BBTrend suggests that SOL’s recent price surge may be influenced by broader market conditions rather than a standalone rally.
SOL BBTrend Isn’t That Big Yet
The BBTrend indicator for SOL is currently at 2.53. Just days ago, it dropped close to -10, indicating extreme bearish pressure, before recovering slightly. This recovery suggests that some buying interest has returned.
BBTrend, or Bollinger Band Trend, measures momentum in relation to the Bollinger Bands. When the value is positive, it indicates price strength, while negative values imply weakness. A BBTrend of 2.53 for Solana shows that it is starting to gain positive momentum after the previous decline.
This shows that the recent pump could be the result of the overall market pumping and BTC reaching new all-time highs, as SOL BBTrend doesn’t look that bullish.
Solana Current Uptrend Is Very Strong
The DMI chart for Solana (SOL) shows the ADX at 47.3, a significant increase from nearly 10 just a week ago.
This sharp rise indicates that the strength of SOL’s trend has intensified considerably in a short period.
The Average Directional Index (ADX) measures the strength of a trend, regardless of direction. An ADX below 20 usually implies a weak trend, while a value above 25 suggests a strong trend. With an ADX at 47.3, SOL is clearly in a powerful trend.
Alongside this, the +DI (Directional Indicator) is at 37 and the -DI at 6.1, signaling that buying pressure is much stronger than selling pressure. Since SOL is in an uptrend, this combination highlights a strong and accelerating bullish move, indicating that buyers are firmly in control.
SOL Price Prediction: It Will Break $210 Next?
The EMA lines for Solana are showing a very bullish pattern. SOL price is positioned above all the EMA lines, and the shorter-term EMAs are stacked above the longer-term ones.
Additionally, the distance between these lines is significant, highlighting strong upward momentum and a clear trend direction.
If this uptrend continues, SOL is likely to test the $210 resistance level. That would be its biggest price since March. However, as indicated by the BBTrend, the current momentum could be heavily influenced by broader market sentiment and Bitcoin’s performance.
If this external momentum weakens, SOL might face challenges and potentially test support levels around $179 or even drop further to $165. The key lies in how long the broader market can sustain the current positive momentum.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
What SHIB Technical Setup Tells About the Price Action
Shiba Inu (SHIB) appears ready to extend its recent gains, as the daily technical technical setup suggests that the meme coin may be primed for a 30% rally. Also, key support levels and increasing buying pressure indicate favorable conditions for an upward move.
But can SHIB’s price rise higher than it has this week? This analysis looks at the possibility.
Shiba Inu Forms Cup-and-Handle Pattern
On the daily chart, BeInCrypto observed that SHIB has formed a cup-and-handle pattern. The cup and handle is a bullish technical chart pattern that resembles the shape of a “U” (the cup) followed by a slight downward drift (the handle). This pattern indicates the potential continuation of an uptrend.
As seen below, the SHIB technical setup shows that the meme coin formed the cup between mid-July and early October. During this period, the token moved between $0.000013 and $0.00018.
The handle, however, formed earlier last month and is still in place at the time of writing. This suggests that SHIB’s price could be ready for a significant breakout. Therefore, if buying pressure increases, the meme coin’s value might soar higher than $0.000019.
Meanwhile, the Money Flow Index (MFI) indicates growing buying pressure, further supporting the potential for a continued uptrend.
The MFI is a technical oscillator that combines price and volume data to assess an asset’s buying and selling pressure. It moves between 0 and 100, with values above 80 often indicating an overbought condition and values below 20 suggesting an oversold market.
When the MFI reading drops, it means that selling pressure is present. However, the indicator is currently rising, indicating that investors have resolved to buy SHIB. Hence, if this remains the same, the meme coin’s value might continue to rise.
SHIB Price Prediction: Target Aimed at $0.000025
Another look at the daily chart shows that SHIB faces resistance around its current value. However, with the buying pressure indicated by the MFI, it can overcome the obstacle.
BeInCrypto also used the Fibonacci retracement index to analyze the extent to which the SHIB technical setup can take the meme coin.
Fibonacci retracement levels are horizontal lines drawn on a price chart to identify potential support and resistance levels. These levels correspond to key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, and 100%).
If the price bounces off these levels, it suggests that the previous trend may continue in the same direction. As seen below, SHIB’s price has bounced off the 61.8% level. As such, the token’s price might increase by 30% to $0.000025.
On the other hand, if the token fails to breach $0.000020, this prediction might not come to pass. Instead, SHIB might drop to $0.000015.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Can Ethereum Whales Protect Recent 20% Rally From Reversal?
This 20% rise has sparked optimism among investors, but there remains some uncertainty over whether the uptrend will continue without a reversal.
Ethereum Whales Make a Comeback
Ethereum whale activity has increased significantly, showing a resurgence of confidence among large holders. The number of addresses holding over $100,000 worth of ETH has grown by 17%, while those holding over $1 million have risen by 19%. These substantial accumulations by high-value addresses reflect growing confidence in Ethereum’s future price performance, with whales likely anticipating further gains.
Such increased whale participation is often a bullish signal, as large investors are typically seen as market stabilizers, reducing volatility by holding their assets long-term. As these significant holders consolidate their positions, Ethereum’s price stability may improve, adding resilience to the recent rally.
Ethereum’s overall momentum is reaching a crucial point, with technical indicators suggesting a potential reversal. The Relative Strength Index (RSI), a key gauge of overbought or oversold conditions, is close to entering the overbought zone.
Historically, Ethereum has experienced price reversals after brief spikes into this territory, although it has occasionally sustained prolonged stays without immediate pullbacks. Given current market conditions, a breach of the overbought zone on the RSI could lead to a price correction for Ethereum.
ETH Price Prediction: Securing Supports
Ethereum’s price has surged by 20% over the past three days, currently trading at $2,911. The cryptocurrency is attempting to establish the 61.8% Fibonacci Retracement level at $2,899 as a support. Holding this support level would strengthen ETH’s upward momentum, potentially preventing a reversal.
If Ethereum can secure $2,899 as a support floor, a rise to $3,000 and beyond may be possible. This level, often seen as a bull market support, could provide the foundation needed for ETH’s price recovery. Successfully maintaining this position would enhance investor confidence and signal further bullish prospects.
However, failure to close above $2,899 could open the door for a potential pullback. Coupled with profit-taking among short-term holders, Ethereum’s price might decline to $2,745. Such a drop would invalidate the bullish thesis and indicate a potential shift toward short-term bearish sentiment among investors.
Ethereum price has seen a strong rally recently, hitting a three-month high after breaking out of a prolonged consolidation range it had been trapped in since August.
This 20% rise has sparked optimism among investors, but there remains some uncertainty over whether the uptrend will continue without a reversal.
Ethereum Whales Make a Comeback
Ethereum whale activity has increased significantly, showing a resurgence of confidence among large holders. The number of addresses holding over $100,000 worth of ETH has grown by 17%, while those holding over $1 million have risen by 19%. These substantial accumulations by high-value addresses reflect growing confidence in Ethereum’s future price performance, with whales likely anticipating further gains.
Such increased whale participation is often a bullish signal, as large investors are typically seen as market stabilizers, reducing volatility by holding their assets long-term. As these significant holders consolidate their positions, Ethereum’s price stability may improve, adding resilience to the recent rally.
Ethereum’s overall momentum is reaching a crucial point, with technical indicators suggesting a potential reversal. The Relative Strength Index (RSI), a key gauge of overbought or oversold conditions, is close to entering the overbought zone.
Historically, Ethereum has experienced price reversals after brief spikes into this territory, although it has occasionally sustained prolonged stays without immediate pullbacks. Given current market conditions, a breach of the overbought zone on the RSI could lead to a price correction for Ethereum.
ETH Price Prediction: Securing Supports
Ethereum’s price has surged by 20% over the past three days, currently trading at $2,911. The cryptocurrency is attempting to establish the 61.8% Fibonacci Retracement level at $2,899 as a support. Holding this support level would strengthen ETH’s upward momentum, potentially preventing a reversal.
If Ethereum can secure $2,899 as a support floor, a rise to $3,000 and beyond may be possible. This level, often seen as a bull market support, could provide the foundation needed for ETH’s price recovery. Successfully maintaining this position would enhance investor confidence and signal further bullish prospects.
However, failure to close above $2,899 could open the door for a potential pullback. Coupled with profit-taking among short-term holders, Ethereum’s price might decline to $2,745. Such a drop would invalidate the bullish thesis and indicate a potential shift toward short-term bearish sentiment among investors.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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