Markets are slowly descending or entering consolidation channels, which could be first sign of longer term reversal
The explosive rally that originated at the beginning of the month is close to its logical conclusion as the majority of digital assets have reversed from their local highs. However, there are some exceptions like XRP that remain in the uptrend.
What’s coming for market next week?
With the bullishness of the market cooling down, we might become witnesses of a much stronger and deeper correction on popular assets like Ethereum, BNB or even Bitcoin. While sentiment-based indicators show that investors are no longer in panic, no fundamental factors that would push the cryptocurrency market have appeared recently.
Open interest in most cryptocurrency derivatives trading platforms has been on a rise, which can be considered as an indication of recovering liquidity and depth. Unfortunately, most of the volume reoccurring on the market could be tied to bears who are trying to get the advantage over bullish retail investors.
The majority of cryptocurrencies, including Bitcoin, are still trading in the uptrend and have not yet lost the foothold on the market completely. However, most of those assets have entered local consolidation channels, which may become a foundation of a downward reversal that will only aggravate the long-term state of the market.
Shiba Inu’s swift reversal
The celebration for Shiba Inu’s unexpected reversal rally and breakout did not last for long. On Wednesday the 18th, SHIB broke through the 200-day moving average in an explosive manner, leaving most of the bears who accumulated short positions at the aforementioned level behind.
However, the breakout that put SHIB at its 75-day high quickly faded after whales provided noteworthy selling pressure, crashing down the premature ladder of support levels that was not ready for an influx of sales.
Unfortunately, Shiba Inu has not yet found any…
