Home DeFi & NFT Shiba Inu and Avalanche (AVAX): Unraveling the Crypto Markets

Shiba Inu and Avalanche (AVAX): Unraveling the Crypto Markets

In the ever-evolving landscape of cryptocurrencies, Shiba Inu (SHIB) and Avalanche (AVAX) have been in the spotlight, experiencing twists and turns that keep traders on the edge of their seats. Let’s delve into the latest developments and predictions surrounding these digital assets.

Shiba Inu’s Rollercoaster Ride

Shiba Inu encountered a significant retracement on January 3rd following Bitcoin’s sell-off. However, a surprising bullish flip occurred a week later, defying short-term bearish sentiments. The market structure, once again, leaned towards the bulls after a whale withdrew $10.27 million worth of SHIB from centralized exchanges, sparking speculation and a subsequent 10% rally.

Late December revealed a robust demand zone at $0.00000916, coinciding with the 50% Fibonacci retracement level. Despite intense selling pressure in January, the 78.6% level at $0.00000827 witnessed a substantial bounce. A recent bearish candle on January 7th was followed by a structure break a week later, establishing a bullish order block.

As of now, SHIB hovers just above this crucial zone, with the On-Balance Volume (OBV) reflecting a January uptick, though momentum remains in favor of the bears. The Relative Strength Index (RSI) struggles to surpass the neutral 50 level.

Open Interest Indicates Short-Term Bearish Sentiment

Analyzing the Open Interest (OI) trend over the past two weeks reveals a lack of conviction in the Futures market. Despite price bounces, like the one from January 8th to 11th, the OI failed to follow suit. Recent days witnessed a decline in OI alongside the price, signaling short-term bearish sentiment.

Should traders go long? The question lingers in the air as SHIB stands at a critical juncture. The market cap in BTC’s terms adds another layer to the complex puzzle.

Avalanche (AVAX): Navigating the Downtrend

14% Slide in 30 Days Sparks Concerns

Avalanche (AVAX) has experienced a 14.36% decrease in value over the past 30 days, a stark contrast to its impressive performance in 2023. While a 292% 90-day increase hinted at an inevitable profit-taking season, questions arise about the duration of this downtrend.

Technical Indicators and Bearish Outlook

Examining AVAX from a technical perspective unveils a notable decline in demand, particularly when comparing the period from $8 to $50. Presently, AVAX’s price resides below the 20 EMA (blue) and 50 EMA (yellow), signaling a bearish outlook. The death cross, with the 50 EMA surpassing the 20 EMA, further supports this perspective.

The 0.786 Fibonacci retracement level points to a potential pullback to $35.07 before any demand resurgence affects its price. The Relative Strength Index (RSI) sits at 46.93, indicating a loss of bullish momentum. Without increased buying pressure, AVAX might struggle to recover before another downward slide.

Liquidation Heatmap Offers Insights

Signals from the Liquidation Heatmap caution traders with short positions targeting less than $35. Potential liquidations loom between $34.46 and $34.97, emphasizing the need for careful consideration. Additionally, longs with high leverage face potential wipeouts in the $38 to $40 range.

Is it time to repeat the 2023 season for AVAX? The Liquidation Heatmap sheds light on possible scenarios, urging caution and strategic decision-making.

Conclusion: Navigating the Crypto Seas

As the crypto seas ebb and flow, Shiba Inu and Avalanche navigate their unique challenges. Traders and enthusiasts alike eagerly await the next chapters in these digital journeys, each marked by uncertainty, potential, and the ever-present thrill of the crypto markets.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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