Since it lies below the important moving averages, excellent He finds himself in a difficult situation: the asset's 50 EMA, a crucial support level during the recent uptrend, has been broken to the downside. By highlighting the growing downward pressure, the move raises questions about whether recent price movements are sustainable. The fact that XLM has also fallen below the 26 EMA, another important indicator that usually acts as a dynamic support level during uptrends, is even more worrying.

Together, these violations indicate a lack of momentum and the asset is vulnerable to further declines. Since the price action is still erratic and buyers may try to regain control in the near future, the breakdown has not been verified yet. Technically, XLM is in a critical situation now. Selling pressure may increase if the asset is unable to rise above the 26 EMA. The next support level is located at $0.31, near the 100 EMA.

For long-term investors, an apparent breakdown below this level could be revealing XLM To a more substantial correction towards the 200 EMA at $0.24. Conversely, a strong bounce above the 50 EMA may reinforce the bullish sentiment and pave the way for a retest of the resistance level at $0.44.

There is potential for price movement in either direction, as the RSI is currently hovering near the neutral zone. The situation requires caution although the breakdown below these key indicators is not yet complete.

Solana's problematic symptoms

Solana It is showing worrying symptoms as it approaches the crucial 200 EMA, which is often seen as the last line of defense before an asset enters a bear market. At a price of around $180 currently, Solana is at a turning point that could impact its trajectory in the middle. Investor confidence has already been shattered by the recent decline below the 50 and 100 moving averages, indicating waning upward momentum.

A test of the 200 EMA, currently trading at around $179, is approaching, putting Solana in a risky position. SOL faces the risk of entering a bearish phase, with possible lower price levels if this support is broken. A breakout could target the $150-160 range, further undermining the asset's recent gains.

Other cryptocurrencies saw sporadic gains, but Solana had difficulty regaining his upward momentum. Declining trading volume and the Relative Strength Index (RSI) moving into bearish territory support the theory that... SolThe market bull run may already be over. A significant recovery from the 200 EMA coupled with increased volume and new buying interest will be necessary for Solana to regain its upward momentum.

It may be possible to retest the $200-$210 resistance level, an important level to monitor for any signs of recovery, if there is a reversal. The market structure is currently weak, as evidenced by the fact that Solana has reached the 200 EMA. This means that the asset has lost a significant amount of its upward momentum, with buyers seemingly exhausted after the stunning rally in late 2024.

Ethereum is in big trouble

Price performance Ethereum It indicates serious problems as the asset continues to decline. Ethereum, which is currently trading at $3,162, has broken through important moving averages such as the 100 EMA and is dangerously close to the 200 EMA, which stands at $3,110. Ethereum may move further into unfavorable territory if this level is broken, which could indicate a long-term downtrend.

On-chain metrics present a similarly worrying picture. Since the merger, the supply of Ethereum has been growing steadily. The supply of Ethereum currently stands at 120 million – just 32,457 ETH less than before the merger. Ethereum may soon eliminate the deflationary advantage caused by the shift to proof of stake, as supply grows by about 45,000 ETH each month.

This pattern indicates that there was not much demand for Ethereum, which prevented continuous issuance from balancing. In sharp contrast to the deflationary expectations set during the merger, Ethereum supply dynamics have been inflationary over the past 10 months. Although macroeconomic factors such as interest rate cuts temporarily boosted buying activity in mid-2024, this shift has been made worse by lower on-chain activity and a lack of sustained demand.

In addition, Ethereum The burning mechanism, which initially created deflationary pressure, had difficulty counteracting the release. Technically, there is a lot of resistance for Ethereum between $3,416 and $3,570. To start the recovery, the bulls will need to reclaim these levels. However, the likelihood of a quick recovery seems slim given the declining trading volume and deteriorating RSI centered around 37.