Solana, Bitcoin, and Shiba Inu Face Critical Tests Amid Market Volatility

Solana's Sharp Decline Raises Concerns

Solana (SOL) has experienced its largest price drop in three years, plummeting 45% from its recent high. The asset, once a top performer in the last bull cycle, is now under intense selling pressure, causing investor anxiety about its short-term outlook. SOL has broken below the critical 200-day moving average, a key technical indicator, signaling a strong bearish trend.

The price is currently testing the $170 support level after dropping below $190, a historically important zone. While the Relative Strength Index (RSI) suggests oversold conditions, which could lead to a relief bounce, further declines to $150 or lower are possible if Solana fails to hold the $160-$170 range. Recovery would require reclaiming the 200-day moving average and surpassing $190.

Bitcoin's Struggle Against a Stronger Dollar

Bitcoin (BTC) is at a pivotal juncture as the U.S. Dollar Index (DXY) shows signs of strength, potentially threatening Bitcoin's upside potential. Historically, a stronger dollar has led to declines in Bitcoin and other risky assets. With the DXY trading above 106, Bitcoin's future trajectory remains uncertain.

Currently, Bitcoin is struggling to break out of its consolidation range, trading around $95,700, with resistance near $100,000 and support at $93,500. A failure to maintain this support level could push Bitcoin toward $90,000. If the DXY continues to rise, Bitcoin may face increased selling pressure and potentially test its 200-day moving average near $85,000.

A bullish scenario could emerge if Bitcoin breaks above $100,000, but this would require a decline in the dollar and improved macroeconomic conditions. The next few weeks will be crucial in determining Bitcoin's direction.

Shiba Inu Shows Glimmer of Hope

Shiba Inu (SHIB) is hovering near its recent lows, sparking speculation about a potential recovery. Despite consistent selling pressure, SHIB may reverse its downward trend if it forms a double-bottom pattern around $0.00001485. However, the asset has struggled to overcome key resistance levels, such as the 26 exponential moving average.

For a bullish reversal, SHIB would need to regain strength above $0.00001713, potentially targeting the next resistance level at $0.000020. However, the current market's low trading volume and uncertainty make a near-term breakout unlikely.

On the downside, a break below $0.00001485 could invalidate the double-bottom formation and push SHIB lower, possibly to $0.000013 or below. While the double-bottom pattern historically signals a potential reversal, the broader market conditions remain challenging for SHIB.