Meme coin Shiba Inu (CRYPTO: SHIB) is currently witnessing a significant drop in trading volume, hitting a low not seen in four months after struggling to build momentum from a local support level reached a few days ago.
This stagnation in trading activity may be due to the general inactivity in the cryptocurrency market, which raises questions about Shiba Inu's ability to re-establish its upward trajectory in the near future, stated U.Today in its market report.
The meme-based cryptocurrency found support locally but has faced difficulties in advancing further.
The waning buying interest has led to a sharp decrease in trading volume, hinting at a potential loss of investor confidence.
This decline may be worrisome for Shiba Inu supporters who may have expected a rally alongside other meme tokens.
The inactivity in the cryptocurrency market might be contributing to Shiba Inu's lack of momentum.
With no significant catalysts propelling the market, several cryptocurrencies are struggling to identify a clear direction.
This ambiguity could deter new investors from entering the market and existing holders from expanding their positions, further exacerbating the problem.
Cardano Encounters A New Support Level: Cardano (CRYPTO: ADA) is currently dealing with a new support level, potentially providing a base for a reversal of the asset's recent downtrend.
The 50-day simple moving average (SMA) is emerging as an important support, even though it is significantly below the same period's exponential moving average (EMA).
Nonetheless, Cardano's recent price action indicates the loss of three major support levels, causing investors to doubt the token's short-term potential.
At the moment, Cardano is trading at $0.37, following a consistent decline over the past month.
During this time, Cardano has broken through the 50-day and 200-day moving averages and the lower border of an expanding price range guiding the asset's price trajectory.
These losses have alarmed investors, who are now seeking indications of a possible reversal.
The 50-day simple moving average, which has surfaced as a new support level for Cardano, might act as a turning point for the asset.
If the token manages to remain above this support, it could indicate a potential reversal, possibly attracting new buyers and inspiring renewed faith among existing holders.
However, given the overall bearish market sentiment, this scenario remains uncertain.
Also Read: Coinbase Demands Action from SEC: The Thrilling Legal Clash In The Crypto World
Solana On The Verge Of A Breakthrough: Solana (CRYPTO: SOL) seems to be on the brink of leaving a turbulent market, as its ecosystem's network activity displays signs of improvement.
This positive development could potentially lead to a wider reversal in the token's value as Solana overcomes the challenges following the FTX implosion, one of which was a sharp decline in the token's value.
With a broader market recovery in sight, Solana might be well-positioned to reclaim lost territory and continue its prior upward trend.
After a period of significant losses, Solana managed to recover some of its value, entering an unstable market marked by erratic price changes.
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