Crypto Market Review, August 26

The cryptocurrency market recovery continues as more assets escape the selling pressure established earlier. Memecoins like DOGE are rallying to values ​​we haven’t seen in months, while majors like Ethereum are showing double-digit gains.

Ethereum breaks out successfully

As we mentioned in the previous market review, Ethereum has been making active breakout attempts after showing a sudden price increase on October 25th. That day, bears were able to push Ether’s value down by 4% at the trendline resistance, making a breakout possible in the future unlikely.

However, the recent short squeeze and active accumulation in the fluctuating market period did their job, and bulls pushed the value of the second largest cryptocurrency to a new local high. By the end of the trading day, Ethereum gained a foothold above the $1,500 threshold.

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The next resistance level for Ethereum will be the 200-day moving average. Unfortunately, the Relative Strength Index shows that the cryptocurrency is already overbought, and another price rise seems unlikely. However, despite the possibility of a short-term reversal, Ether could simply enter a short-term consolidation channel and then continue to the aforementioned resistance.

The increase in the market is most likely linked to the mild recovery in the NFT and DeFi industry we saw in the last week. With the increased usage and revenue, Ethereum may gain a bit more traction in the market even with the continued monetary policy.

Dogecoin rally continues, SHIB falls behind

Despite existing selling pressure from retail investors, DOGE has continued to move upwards, reaching new local highs. Over the past 24 hours, the memecoin has made a number of attempts to break the local resistance level of the 200-day moving average.

Unfortunately, bears are currently winning the battle by pushing the value of the memecoin down by more than 5% in the last few hours. As we mentioned in one of U.Today’s articles, the activity of the DOGE whales which has been quiet for almost a year now is picking up and so is the transaction activity on the network.

While some owners may start to sell the asset in view of its strong price performance, the activity in the market may start to attract more retail investors. Historical analysis shows that most of DOGE’s price development has been a reflection of massive retail inflows into the asset. Therefore, the action of large investors will most likely not be the main growth factor for Dogecoin.

The biggest DOGE competitor, Shiba Inu, has not yet caught up with its predecessor, as the token is only showing a mild increase of 10% today. According to the chart, SHIB also took a risk and temporarily broke through the 50-day moving average.

However, major traders almost immediately ended the breakout attempt and pushed SHIB’s value back below the resistance level. Unfortunately, SHIB would need institutional support from investors to break out significantly, as the percentage of retail holders who tend to sell assets almost immediately after a mild price increase remains high.