The general crypto market hasn’t made a solid recovery because the leading cryptocurrency has been bouncing within the narrow range of $47K and $48K. Even though ETH has slightly recovered from its oversold region, it has yet to generate enough volume to make a strong recovery. However, DOGE has been giving mixed signs and continues to consolidate in the highest liquidity range. Conversely, the 4-hour timeframe shows that SOL has created a reversal pattern and is about to test the 0.619 fib retracement level.
ETH Price Action
ETH/USD 4-hour timeframe. Source: TradingView
ETH tested the 200-SMA four times but failed despite being on an uptrend in the past fourteen days. Instead, it dipped towards the 0.382 and 0.50 fib retracement supports. The positions have been established for the past eleven weeks. A confirmation of these Fib. supports will be Ether’s strong close over the $3.76K range.
Even though ETH broke out of a descending channel, it failed to surge past the 20 SMA price level, which continues to act as a strong resistance. Despite gaining 2.4% in the last 24 hours, the $3.64K level remained its support over the past 60 days. But this uptrend is weak, as indicated by the downtrend in the volume oscillator. After bouncing off a record RSI low of 19, ETH’s RSI is now about 33 but continues to struggle within that range.
SOL Price Action
SOL/USD 4-hour timeframe. Source: TradingView
After bouncing off a 21-day peak four days ago, SOL broke out quickly from the inverted head and shoulder but could surge past the $204 price. Following a rejection at that price level, it has lost nearly 16% to date, with the 0.236 and 0.382 Fib retracement levels acting as support. SOL continues to trade at a price close to the 0.619 Fib retracement level over the last fourteen days despite the loss.
However, the 4-hour timeframe shows that SOL is developing a falling wedge with the bears retaining control and the $168 level acting as its next support. As of this writing, SOL trades at nearly $175. Despite showing a slight recovery, its RSI remains close to the oversold area. It is only logical that a downtrend is the next possibility. Also, the MACD is about to turn bullish as it is currently bearish. However, if SOL is to maintain a strong breakout, it will require huge volumes.
DOGE Price Action
DOGE/USD 4-hour timeframe. Source: TradingView
DOGE broke out from a dipping wedge pattern in the last 24 hours. A breakout candlestick confirmed that the bullish move isn’t temporary, with the trading volumes also increasing sharply. DOGE continues to bounce around the $0.192 and $0.163 range following an up-channel reversal over the last 30 days.
Also, black dots on the squeeze momentum indicator indicate low DOGE volatility. Consequently, traders shouldn’t be surprised at a short-term consolidation. DOGE has remained close to its highest liquidity PoC line over the past 60 days. As of this writing, DOGE trades at $0.175; the RSI hasn’t shown any strong trend bias after a reversal near the 44-point.