Memecoins are taking over the cryptocurrency market while “serious projects” like Ethereum are losing
The last week on the cryptocurrency market was more than reassuring as the majority of assets, including Ethereum, Bitcoin and even Dogecoin, showed some signs of a sped up reversal that could’ve taken place if not for the correction we saw today.
Shiba Inu and other meme currencies calmed down
Shiba Inu price performance at the beginning of this week took the spotlight on the market as the long-forgotten memetoken gained more than 25% to its value in less than 24 hours of trading. The price increase was mostly tied to the technical condition of the asset, which moved in the consolidation for the last 90 days.
As the experienced trader Peter Brandt noticed, SHIB formed at least one pattern that hinted at the upcoming reversal, which is the inverse Head and Shoulders pattern that appears at the end of a downtrend.
With the successful completion of the pattern, Shiba Inu thrusted through the local resistance level and reached the 50-week moving average, which is considered a long-term barrier between bullish and bearish assets.
The competitor of SHIB, Dogecoin was also following the performance of its “younger brother” as the coin gained around 15% to its value in the last 24 hours but then lost almost half of its growth on the day after.
Ethereum denied at $2000
Despite the euphoria around the Merge update that fueled the rally to $2000, the second biggest cryptocurrency on the market couldn’t gain a foothold about the important resistance level and quickly returned below the $1900 threshold.
While the reversal from $2000 might look worrying, the fundamental value of Ethereum hasn’t changed a bit as long-term investors are still bullish because of the Merge update and believe that it will be disruptive for the future of the project.
The activity of large Ethereum addresses also suggests that whales are getting ready for the market volatility on the “day X” in September as almost any kind of technical issue might cause a massive drop in value of Ether.
Bitcoin shows weakness
Despite the most recent surge to $25,000, Bitcoin remains weak from both technical and fundamental standpoints as the first cryptocurrency’s trading volume reaches another low showing that the majority of investors aren’t yet sure what’s going to happen with BTC in the foreseeable future.
From the fundamental point of view, Bitcoin, just as other risk assets, remains under pressure during the rate hike cycles and monetary policy tightening. As most analysts expect, this will last until the end of 2022 or the beginning of 2023.
From a technical standpoint, BTC remains in the ascending wedge pattern and moves up continuously but due to the lack of trading volume and price action, it’s safe to say that the situation of the chart will most likely change drastically with the next volatility spike.
At press time, Bitcoin is consolidating at $24,000 and losing around 1% of its value in the last 24 hours.