Crypto Market Review, 30 August
Unfortunately, the relief we are seeing in the cryptocurrency market has nothing to do with mining
As the cryptocurrency market took a massive hit a few days ago, memecoins like Shiba Inu and Dogecoin are losing a large chunk of their value. However, thanks to the presence of strong support levels that correlate with current trends, both assets can prove to be a quick return in the cryptocurrency market.
Shiba Inu’s successful bounce
As we mentioned earlier on U.Today, Shiba Inu has successfully returned the local support level, which is a trend line that has led the token up for the past two months. The fact that SHIB has not broken the local trend line makes it eligible for another bounce in the foreseeable future.
The only thing the meme token needs now is the support of retail or institutional traders, as trading volume is a necessary condition for the asset to rally. Without support from either group of traders and investors, SHIB is doomed to move in the consolidation or a low volatility price area until it faces heavy selling pressure that could cause a massive collapse.
With the further adoption and implementation of SHIB payments, we can see a gradual increase in the number of holders on the network. Unfortunately, without a proper increase in trading volume, another rally is next to impossible.
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Dogecoin shows no progress
Unfortunately for Dogecoin holders, the “crypto classic” is losing out to its modern predecessor, as DOGE failed to remain in the uptrend and has fallen below the trendline support that served as a springboard for the Shiba Inu.
The reasons behind the fall are the same as always: lack of inflows and low-risk demand in the market. In addition to reasons that apply to almost any cryptocurrency in the current space, Dogecoin’s main driver – Elon Musk and Tesla have not released any posts, news or even memes that will make investors pay attention to the classic market.
“Serious” coins show mild growth
Both Ethereum and Bitcoin are showing signs of recovery with around 4% price increase in the last 48 hours. The mild growth was most likely caused by the oversaturation of the market with sell orders and shorts.
Such a tendency is common for a bearish market, when assets that have taken a significant hit go into a short-term rally before another sharp fall. Since the beginning of July, the cryptocurrency market has moved upwards, surpassing the $1.1 trillion threshold. Bitcoin topped $25,000 and Ethereum broke through the psychological level of $2,000.
Nevertheless, as soon as the market got a reminder of current macroeconomic conditions, we saw a refreshing correction that put hope for the rally during the rate hike cycle.
Currently, Bitcoin is trading just above the $20,000 threshold, gaining around 0.35% to its value in the last 24 hours. Ethereum is showing a better price, aiming for 3% growth since yesterday.
