Market optimism has been sparked by Bitcoin‘s recent surge above $90,000, but the breakout’s viability is beginning to question itself. The price is currently trading around $94,600 but the volume profile is weakening, indicating that momentum is waning. Furthermore soft volume can be disastrous for trend continuation in a market where conviction counts.
Although the price has increased significantly from its April lows, there is no evidence of growing buyer interest to support this recovery. Bulls are concerned because volume has been steadily declining since the breakout. Since Bitcoin is hovering just below the psychological $95,000 mark, it runs the risk of forming a local top and rolling over in the absence of stronger inflows.
Although this is not quite the point of surrender or collapse, it is beginning to feel overextended. Technically speaking, Bitcoin is above all significant moving averages, such as the 50-day, 100-day and 200-day, indicating structural strength. At 66, the RSI is rising but is still below overbought levels, providing some leeway.
However, the short-term outlook is more precarious than it appears. It is very likely that Bitcoin will return to $85,000-$86,000. This is if it breaks below $89,200 and fails to hold the $90,000 support. On the other hand, a clear break above $95,000 with fresh volume might spark a rally back toward $100,000, but that situation calls for more than just optimism.
Solana back?
Following a brief rally, Solana is losing ground as price action now suggests a waning bullish structure. With a current price of about $146, the asset is perilously near the crucial $140 support level, which is a bull’s dream. If this level is broken, the 26-day EMA, which is now trading at $139, will probably be retested.
Exhaustion is evident from the chart. The 100-day and 200-day moving averages, which are both hovering overhead at $151 and $162, respectively, have formed a confluence of resistance that Solana has not been able to overcome despite a strong rebound from March lows. Momentum indicators such as the RSI price action has stalled just below this zone, creating a bearish divergence that is currently flattening out around 58.
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The combination of decreasing volatility and the inability to generate volume on recent green candles suggests that demand is waning. As SOL fails to gain traction above significant resistances, traders seem to be taking profits. The 26 EMA at $139 will be the first likely landing zone if sellers seize the initiative and push the price below $140. A more severe correction might reveal the $131 level, which is in line with the 50-day MA and prior consolidation support.
The overall market structure of SOL is still susceptible. The asset seems to be moving into a distribution phase rather than getting ready for an uptrend continuation, and the rally from early April lacks strong follow-through.
If Solana does not see a sharp spike in volume and turns $151 into support, the short-term outlook is likely to be negative. Without outside stimuli or fresh buyer interest, momentum is waning, and SOL may fall even more, returning to the moving averages it struggled to regain only a few weeks ago.
Dogecoin looks fine long term
Given the signs of exhaustion in its recent short-term rally, Dogecoin is once again on the verge of entering a correction. DOGE is now trading at about $0.17, just below the 50-day moving average, which has historically served as both dynamic support and resistance. However, the longer-term situation is better, with DOGE showing some positivity on the one-week chart, where the price is sitting comfortably above 50 EMA.
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With lower highs and lower lows since its November peak, DOGE has been trapped in a persistent downward trend. Although it has recovered somewhat from the $0.14 area, it has not yet effectively reclaimed important resistance areas. Bulls may not have enough firepower to overcome overhead resistance, especially in the $0.18-$0.19 range, if price rejection occurs close to the 50 EMA.
In comparison to its meme coin peers such as SHIB, which at least exhibit on-chain accumulation, DOGE’s recent price action is mainly disappointing. However, DOGE does not have any fundamental catalysts or speculative momentum. A steady decline in trading volume suggests waning interest, and the asset is still capped below the 200-day MA ($0.21).
