Shiba Inu (SHIB) Breakout Secured: What's Next? Bitcoin (BTC) Delivers Hidden Signal, Toncoin (TON) Next to Skyrocket?
2024-11-26

Investor optimism was sparked by Shiba Inu's recent successful breakout from its consolidation phase. Despite this, there has not been a noticeable acceleration in price movement, suggesting that the rally has stalled. Examining market dynamics and on-chain data helps identify possible causes for this slowdown. 
A crucial measure of Shiba Inu market activity is the quantity of significant transactions and the general activity of the network. Transaction volume has decreased recently when compared to previous peaks. Although the number of large transactions has increased, it is still far below the levels observed during its major bull runs, indicating that whales are not as active in driving up prices.SHIBUSDT Chart by TradingView">
Additionally, there is conflicting sentiment in the profitability data for SHIB holders. Although the majority of addresses holding SHIB are in the money, it is possible that the remaining sizable group of holders at higher price points are selling their holdings during this rally, which would increase market pressure to sell. The general state of the market may also be to blame for Shiba Inu's poor performance.
Bitcoin, Ethereum and XRP are among the assets that have been making headlines and drawing interest from investors. Altcoins like SHIB have less opportunity to shine because of the significant inflows and market interest currently seen in these high-cap assets.
The charts show that SHIB has been able to hold above important support levels close to $0.00002300, but the volume is still quite low. There is not enough buying pressure to support a long-term rally. Without sizable inflows or increased on-chain activity, it might be difficult for SHIB's price to keep rising.
Bitcoin's paramount level
The market is paying close attention to Bitcoin as it hovers around the psychological and technical threshold of $100,000. A subtle but alarming signal is appearing in the form of RSI divergence, even though the current bullish momentum points to the possibility of a breakthrough.
There is currently a divergence between price and momentum, as indicated by the Relative Strength Index (RSI), a momentum oscillator. Although the price of Bitcoin has been reaching all-time highs, the RSI has been essentially stagnant or even dropping, suggesting that the rally's strength may be waning.
A trend reversal is frequently preceded by this divergence, which suggests that selling pressure may soon be applied to the asset. RSI divergence has a track record of accurately predicting impending corrections. 
For example, a similar divergence was seen prior to a significant market correction during the period when Bitcoin was rising to its all-time highs in late 2021. Investor caution is warranted, even though this does not ensure an immediate pullback. The 50-day EMA is currently trending in the $75,000 range, which is where Bitcoin may test support levels if a correction takes place.
Toncoin's potential
Crypto enthusiasts are taking notice of Toncoin because it seems ready for a possible rally. Despite still being relatively cheap compared to the market's best performers, recent market and technical trends indicate that the coin may have more to offer than first thought. As of this writing, the price of Toncoin is hovering around $6.13, showing a consistent recovery from recent lows. 
A notable increase in trading volume, which might suggest rekindled investor interest, supports this level. Although there is potential, the price action has not yet broken decisively above significant resistance levels, indicating that buyer confidence is still moderate. Toncoin's relative undervaluation is a key justification for its possible rally. Toncoin's recovery has been slower than that of assets like Bitcoin or Ethereum, which have experienced sharp increases.
This performance lag could make it a contender for a late-stage rally, when money shifts to cheap assets. Technical indicators for Toncoin also suggest a neutral but hopeful outlook. The asset is not yet overbought, as indicated by the RSI's continued healthy range and the recent recovery from the 50-day EMA, which points to strong support.
This makes more upward momentum possible. Even though it is unlikely to achieve the explosive returns of premium assets, Toncoin still has the potential to generate sizable returns. If market sentiment continues to improve, a move above $6.50 may pave the way for a test of the $7.00 resistance with potential for additional gains.