Anika Begay
U.Today – The price of has moved very little to not at all over the past few weeks, continuing to be stuck in a stalemate. SHIB has made several attempts to break out of its current trading range, but has not been able to create much momentum, which has left investors and traders feeling uneasy.
Looking at the available market and on-chain data, it is evident that SHIB is currently stuck in a small trading range with its price hovering around $0.0000134. The 200-day and 100-day exponential moving averages (EMA) coincide with the resistance levels at $0.00001813 and $0.00001597, respectively, which are important to keep an eye on.
It could follow a stronger uptrend if SHIB manages to break out of these levels, which could signal the end of this prolonged period of stagnation. The support at $0.00001200 is still crucial on the downside. SHIB could enter a deeper correction if there is a drop below this level, which could lead to further declines.
This could further prolong the current impasse, which would be especially concerning for those looking for a bullish reversal. On-chain indicators point to a lack of significant buying interest, which is consistent with the overall mixed market sentiment surrounding SHIB. As traders are cautious and waiting for a clear directional move before committing to new positions, trading volume has remained relatively low.
I can’t break through
The 50-day EMA on the chart, which is $61,000, is a significant resistance level that Bitcoin has encountered recently. Bitcoin has failed to break above this barrier four times in a row despite multiple attempts indicating that this resistance may be stronger than initially thought. For traders and investors, failing to break above $61,000 is concerning because it could signal a period of inactivity for the price of Bitcoin.
A common technical indicator is the 50 EMA which can indicate a weakening of the upside momentum when the price has difficulty breaking above it. This puts Bitcoin in a situation where it could be stuck in a small trading range and unable to gain the momentum it needs to move higher. The broader market environment is making matters worse as there are indications of increasing complexity and unpredictability in the situation.
The lack of strong buying interest and the decline in trading volume are two possible reasons why the market fails to break above this resistance level.
clearly underutilized
Ethereum transaction fees have fallen to their lowest point in five years, raising the possibility of a fundamental crisis. The strength of the broader market and the economic model of the network could be significantly impacted by this drop in fees.
According to the provided charts, ETH supply has increased by 58,292 ETH over the past 30 days with an issuance rate of 939,000 ETH per year. The burn rate, which is key to limiting supply and preserving scarcity, has dropped to 229,000 ETH per year. With a net annual supply growth of 0.59%, Ethereum’s value proposition, which has been primarily focused on deflation since the move to Ethereum 2, may be undermined.
The short-term benefits to the user from low transaction costs could be offset by reduced incentives for validators and a decline in the overall security and stability of the network. The reward structure for validators becomes less attractive when fees are generated less frequently, which could lead to a decline in participation in the network. In a proof-of-stake system where validator incentives are essential to maintaining the security of the network, this scenario is particularly concerning.
Ethereum’s core value drivers, such as network security and scarcity, could be compromised if this trend continues, potentially leading to a prolonged period of stagnation or even decline. A key issue that must be addressed to prevent Ethereum’s market dominance from eroding further is the continued decline in fees and burn rates.
This article was originally published on U.Today
