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Following the recent price increases in the cryptocurrency markets, Dogecoin (DOGE), Shiba Inu (SHIB), and Cardano (<a href="https://en.coin-turk.com/cardano-price-prediction-ada-could-see-a-significant-drop-to-400-satoshi-according-to-analyst-benjamin-cowen/”>ADA) have also followed the upward momentum. However, even as investors make profits, an important indicator is starting to signal a sell-off. Could this be the beginning of a trend reversal for cryptocurrencies?
Will the Rise in Meme Tokens Continue?
According to CoinMarketCap, DOGE has managed to increase its price by more than 2.2%, while SHIB has shown an increase of over 5.4% in the past seven days. Additionally, both meme tokens have maintained higher social volumes last week. However, as their charts decline, the prevailing sentiment around these meme tokens becomes worrisome, which could imply negative sentiment dominating the market.
Cardano’s weekly chart, like DOGE and SHIB, also supports the upward momentum. Data from CoinMarketCap reveals that ADA has increased by more than 6% in the past seven days. At the time of writing, the token was trading at $0.2985 with a market cap of over $10.5 billion, making it the eighth-largest cryptocurrency. The price increase has been supported by an increase in trading volume in the past 24 hours.
Critical Metrics in Altcoins
Furthermore, data from LunarCrush indicates a recent 4% increase in ADA’s social engagement. Although the current price movement of these cryptocurrencies seems optimistic, a popular crypto analyst named Ali highlighted a measure recently suggesting a price correction. According to the shared tweet, the TD Sequential indicator was signaling a sell-off on daily charts.
TD Sequential is a valuable technical analysis tool that can help investors identify trend exhaustion and price reversals. Therefore, taking a closer look at the situations of these mentioned cryptocurrencies can provide a better understanding of what to expect from them in the coming days. Particularly, Dogecoin’s relative strength index (RSI) and on-balance volume (OBV) experienced slight decreases, indicating a potential upcoming drop in the meme token’s price. However, the Chaikin Money Flow (CMF) remained in favor of the bulls.
