- Dogecoin getting out
- Solana can comeback
Bitcoin has just produced a classic example of market turbulence. After almost falling below the $100,000 mark, which was a sign of a possible trend reversal, Bitcoin made a stunning comeback, soaring back toward $105,000 and sending short sellers reeling. Bitcoin’s chart looked like a minefield for traders with leverage during the last few trading sessions. It turned out to be a classic fakeout, but a brief breakdown below the critical $100,000 level appeared convincing enough to cause widespread liquidations.
The swift recovery that ensued not only disproved the bearish structure but also demonstrated how resilient bulls are in the current market cycle. Overly leveraged volatile markets are characterized by this fakeout; fakeout behavior is a nightmare for anyone who is overexposed. The breakout penalized shorts, who believed they had the upper hand, while the breakdown flushed out longs, taking both long and short traders by surprise.
BTC/USDT Chart by TradingView
Technically, Bitcoin is currently trading just below recent resistance after regaining the local high. As of right now, there is not much evidence of bearish divergence, but momentum indicators are still hot, and the RSI is above 70, which may indicate overbought trading conditions.
The volume level is dropping a little, which could indicate a brief period of exhaustion or simply a cooldown before the next move. If Bitcoin can sustain this momentum and stay above $105,000, it could push toward new heights. The possibility of another trap or whipsaw move, however, is still very high — if it is rejected at this stage once more. Essentially, Bitcoin has once again demonstrated why it is the king of uncertainty.
While the recent rally is impressive, the aftermath of that fakeout serves as a reminder that the market’s goal in the cryptocurrency space is to harm as many traders as possible, particularly those who become arrogant when using leverage.
Dogecoin getting out
With the asset trading sideways and displaying indications of stagnation as volatility fades from the chart, Dogecoin is presently trapped in a frustrating limbo. Following its recent surge above significant resistance levels earlier this month, DOGE has been unable to build on the momentum and has entered a low-energy correction phase that is beginning to negatively impact market sentiment.
The price is circling around $0.22, but what is more worrisome than the price is the lack of movement. There appears to be indecision among traders as the candlestick structure is forming a descending triangle, or wedge. DOGE is still chained in place, but volume has significantly decreased, which usually signals a big move. A short-term neutral-to-bearish stance is suggested by the 26 EMA’s current technical intersection with midterm indicators.
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As support, DOGE is currently trading above the 50 EMA and the 100 EMA. However, the market seems to be in waiting mode in the absence of a clear catalyst. Although it is still elevated, the RSI is moving below the overbought zone, suggesting that there is still some latent bullish sentiment that is not strong enough to move the needle at this time.
DOGE is essentially in a holding pattern until it breaks above $0.24 or below $0.21. Traders should monitor volume and EMA compression because Dogecoin is expected to explode once this slumber is over. The sole question is: which course will it take?
Solana can comeback
Pressure is steadily increasing on Solana, and a surprise breakout could be imminent. With a descending wedge pattern forming just below the crucial $170 resistance level, the asset has entered a consolidation phase following a robust rally in late April and early May. Solana is a strong contender for a volatility-driven move because of this structure and its closeness to the 200 EMA.
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At $167, SOL is currently trading at a technical inflection point. Almost precisely where the price action is coiling is the 200 EMA, which serves as both a magnet and a resistance. A clear breakout is frequently preceded by this type of setup in the past, particularly when short-term exponential moving averages such as the 26 EMA start to converge toward long-term indicators.
The approaching cross between the 26 EMA and the 200 EMA is what strengthens this arrangement. This bullish crossover could be a significant technical confirmation of a trend reversal, which is a setup that often draws momentum. When combined with a breakout above $170, this signal has the potential to trigger a strong bullish wave that could push Solana closer to $190 and higher.
Even though volume has somewhat cooled off, Solana’s RSI is still above 55, indicating that there is still potential for growth before the asset is overbought once more. The volume decline could simply be a pause — a moment of indecision before the market chooses a direction.
Particularly on a spike in volume, a clear break above this barrier would probably lead to a significant upward move. On the other hand, a rejection might result in SOL retesting support in the $155-160 range. Solana may be getting ready to surprise everyone watching from the sidelines as the chart is currently leaning bullish.
