Shiba Inu (SHIB) Might Skyrocket if This Happens, Dogecoin (DOGE) Lost 15% but It's Ok, Bitcoin (BTC) $70,000 Comeback After This?

Shiba Inu Poised for Volatility Spike; Moving Averages Converge

Shiba Inu has been on the mend in recent weeks after a notable upswing in September. Traders are keeping a close eye on the cryptocurrency as its key moving averages on the chart converge, signaling a potential spike in price volatility.

Historically, moving average convergence has often preceded an approaching spike in price volatility. On the current chart, SHIB's moving averages, particularly the 50-100 and 200-day EMAs, are coming closer together, indicating a technical setup that typically occurs before a breakout.

This pattern often acts as a precursor to a significant price movement as the market gathers enough momentum to push past resistance levels or drop towards support. A successful breakout from this convergence could lead to a substantial price increase for SHIB, with crucial resistance levels around $0.000018 and $0.000019.

A bullish rally may be fueled if these levels are breached, encouraging further buying pressure. Conversely, if the volatility spike results in a decline for SHIB, the asset must stay above the latest trendline support at $0.0000168 to maintain the bullish structure.

The Relative Strength Index (RSI) currently resides in a neutral zone, adding to the bullish sentiment by indicating that SHIB has the potential for upward momentum without immediately hitting overbought territory.

Dogecoin Uptrend Takes a Pause

Despite Dogecoin's recent 15% drop from its recent highs, there is no cause for panic. This correction may actually be beneficial for the asset's overall trajectory, as it is a common occurrence in robust uptrends, enabling the asset to establish a stronger foundation for future gains.

As the current chart shows, Dogecoin has experienced a remarkable rally in recent weeks, breaking through several resistance levels with considerable force. This type of sharp ascent often results in overbought conditions, necessitating a price pullback for a more sustainable growth pattern.

The current retracement aligns with a classic technical setup where an asset resets before resuming its trend. Adding to the positive perception of this correction is the support present around the 50-day and 100-day EMAs.

These moving averages may provide solid footing for Dogecoin to recover from, as they currently converge near key price levels. In technical analysis, these support levels can act as launchpads, increasing the asset's ability to continue its upward trend.

Market sentiment for Dogecoin remains strong, which will likely result in renewed buying pressure once this correction levels off. Furthermore, the Relative Strength Index (RSI) has moved away from overbought levels, suggesting that DOGE can now appreciate without immediately encountering selling pressure.

BTC Recovery Still Possible

Bitcoin recently retreated after briefly touching the $70,000 mark, but attention is now shifting to a potential resurgence point near its 26-day Exponential Moving Average (EMA). Bitcoin is currently hovering around this pivotal level, and the asset's next move could determine whether it attempts to reclaim $70,000.

In uptrends, the 26 EMA, depicted as the green line on the chart, often acts as a dynamic support level, attracting buying interest during corrections. Bitcoin has historically rebounded when it has declined to this level, and if similar support materializes now, a significant short-term rally could occur.

However, it is important to note that while the 26 EMA provides a technical setup that could lead to a reversal, it is not a foolproof guarantee of recovery. The recent downward momentum in Bitcoin warrants caution, as further declines are possible if EMA support fails.

In that scenario, BTC could retest lower supports such as the 50 or even 100 EMAs. Nevertheless, if buyers step in at the 26 EMA, Bitcoin could swiftly regain momentum and make another run at $70,000. This level has become a psychological barrier, and a decisive close above it could rekindle bullish sentiment and propel Bitcoin to test its previous all-time highs.

In conclusion, the way Bitcoin reacts to the 26 EMA could determine its near-term trajectory. While the level presents a recovery opportunity, investors should be prepared for either scenario.