SHIB whales are no longer interested
The enormous buying power that existed in the market at the start of the reversal rally has now evaporated and most Shiba Inu whales are no longer interested in sustaining the rally. However, the inability or unwillingness of whales to push the token further could be related to the need for a temporary correction which would cool down SHIB and the market at large.
Yesterday, we saw a huge drop in the amount of Shiba Inu tokens burned on the network. Such a severe drop could be seen as an indicator of declining network activity which does not favor SHIB. Fortunately, the Shiba Inu’s burn speed and overall network activity are recovering as the burn speed is now reaching values that we usually see when the network is functioning normally.
From a technical point of view, SHIB was unable to break the extended downtrend and reversed the three-month trend line. If the same trend prevails in the market, the meme token will return to the downward movement channel and lose all its gains since the start of the reversal in the market.
The cornerstone of Solana
In one of our previous analyses, we highlighted the importance of Solana’s local trendline support that investors use as a guideline for SOL rallies. Unfortunately, Solana has not been able to exit the tight trading channel and now needs to enlist investor backing to continue its progress.
However, indicators such as the Relative Strength Index, volume profiles and volatility suggest that SOL will break below the local trend line and enter a downtrend, although a rebound is possible in the future. According to analysts like Chris Burniske, a medium-term bear market is not what Solana investors are expecting.
The bizarre state of XRP
The last thing one would expect from XRP, which has not been performing exceptionally well in the market, is the “overbought” signal flashing on the RSI, as the indicator suggests that the cryptocurrency has very limited room for improvement.
Since the beginning of a market-wide reversal, XRP has gained about 17% in value, which is not the best performer in the market, or even in the top 10. However, investors have already stopped pumping the asset with funds, which could be the main reason behind XRP’s 3% reversal from the local high.
As of press time, XRP is trading at $0.4 and is consolidating around its 200-day moving average. He still hasn’t managed to break it. If the RSI signal is correct, we will most likely see an acceleration of the reversal in the coming days.
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