While the Bitcoin price is currently stuck in a sideways trend, some altcoins in the cryptocurrency market are showing strong momentum. These three altcoins are currently attracting the attention of investors and traders alike: Shiba Inu (SHIB), Solana (SOL), and Polygon (MATIC). Let’s dive into the technical chart analysis of these altcoins and examine the possible price movements that could unfold this week.
Shiba Inu (SHIB) – A defining moment
SHIB is at a critical moment, where the next move could determine its trajectory for the rest of the year. After experiencing a notable rally earlier this year, SHIB entered a downtrending channel in early February, dragging its price below the yearly opening level. However, a breakout from this channel occurred over the weekend, indicating a potential trend reversal.
As SHIB bulls try to validate this breakout, its success could drive the price up by 30%, as NewsBTC reported yesterday. This would take the SHIB towards the resistance area between $0.00000969 (200-day EMA) and $0.00000977 (38.2% Fibonacci), with an important psychological milestone of $0.00001 within reach.
However, a confirmation of the breakout is still pending. Although the Shiba Inu price managed to hold above the trend channel yesterday, the bulls are still hesitant to make an impulsive move towards the 23.6% Fibonacci level at $0.00000834. A break above this can be seen as confirmation of a trend change.
SHIB breakout still vulnerable, 1-day chart | Source: SHIBUSD on TradingView.com
Solana (SOL) – Rising Up Against the Crypto Odds
Solana (SOL) made waves in the crypto market last week, posting an impressive 39% price increase over the past 12 days. This rise propelled SOL to the critical resistance level represented by the 200-day EMA.
Getting past this level has been a persistent challenge for SOL since April 2022, but recent developments offer hope for a possible breakthrough. At press time, the SOL price broke above the 200-EMA at $21.98, trading at 22.07. A daily close above this price level would be hugely bullish.
SOL trading above the 200 day EMA, 1-day chart | Source: SOLUSD on TradingView.com
SOL’s rally is particularly noteworthy, considering the setbacks it faced due to the FTX drama and SEC filing as a stock. Should the 200 day EMA be breached, the 50% Fibonacci retracement level and the $27.00 yearly high could serve as the next targets for a prolonged rally, which could give investors another benefit from the market. 22%, as detailed in our latest analysis.
Polygon (MATIC) – New impulse
Recent events have sparked interest and potential opportunities for investors. The announcement of former General Counsel Marc Boiron as the new CEO has generated positive sentiment within the community. On-chain data indicates a significant increase in social volume after the news, suggesting increased attention and potential bullish sentiment for the MATIC price.
From a technical point of view, MATIC has seen a 40% rise from its local low in June. The price is currently below the 23.6% Fibonacci retracement level, and a break above this level could send MATIC looking towards the 200 day EMA and the 38.2% Fibonacci retracement level. which offers a rebound of 22%. However, breaking the resistance at the first Fibonacci level at $0.756 is a crucial step in looking at potential bullish momentum.
MATIC following Solana’s trajectory, 1-day chart | Source: MATICUSD on TradingView.com
Please note: The analysis and observations in this article should not be considered financial advice. Cryptocurrency investments carry inherent risks, and readers are urged to conduct thorough research before making any investment decision.
Featured Image from iStock, Chart from TradingView.com
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