Altcoins Shiba Inu and Ethereum Eye Bullish Breakouts Amidst Market Volatility
Altcoins Shiba Inu and Ethereum Eye Bullish Breakouts Amidst Market Volatility
Shiba Inu ($SHIB) is poised for a significant rally, with analyst Javon Marks predicting a 200% to 700% surge as it breaks from an accumulation zone, supported by bullish technical signals and rising derivatives interest. Concurrently, Ethereum ($ETH) is showing strong recovery momentum above $3,500, aiming to clear crucial resistance levels around $3,650 and $3,740 to confirm a major breakout. Both altcoins exhibit potential for substantial gains, though traders are cautioned about inherent volatility and technical challenges.
Shiba Inu Positioned for a Potential 200% Rally
According to technical analysis by Javon Marks, Shiba Inu (SHIB) appears to have exited a prolonged accumulation phase, signaling the potential entry into a new bullish cycle. Marks highlights early bullish divergences on the MACD, projecting a potential 200% rally towards the $0.000032 resistance level from current prices. Furthermore, some estimates suggest an even more substantial rise of approximately 700% to $0.000080. This optimistic outlook is reinforced by derivatives data, which shows a 15% increase in open interest for Shiba Inu contracts over the weekend, amounting to around $76 million. While SHIB has experienced extreme volatility since late 2024, including a sharp decline and subsequent recovery, the current sentiment points towards building momentum. However, analysts advise caution, noting that the setup is largely trader-led and susceptible to rapid price reversals.
Ethereum Gears Up for Crucial Resistance Test
Ethereum (ETH) has initiated a strong recovery wave, successfully climbing above the $3,500 mark and demonstrating positive signs. The asset is currently trading above $3,550 and its 100-hourly Simple Moving Average, setting the stage for continued upward movement. Bulls have managed to push ETH past key Fibonacci retracement levels from a recent downward move. Analysts are closely watching critical resistance points, particularly around $3,650, $3,710, and $3,740. A decisive breach above the $3,740 level could propel Ether towards the $3,880 resistance zone, with potential to reach $3,920 or even $3,950 in the near term. Conversely, a failure to clear the $3,650 resistance could trigger a fresh decline, with initial support identified near $3,540 and a more significant support level around $3,485.