Mainstream Coins Rally Begins, Beware of Short-Term Reversal Traps

As the market enters a new phase, various cryptocurrencies have recently shown a rally. Latest data indicate Bitcoin is trading at $73.64K, Ethereum reaching $2.28K, while altcoins including PEPE, ADA, and SHIB are leading the gains. However, amid the optimistic market sentiment, investors need to remain rational—Is this rebound a true trend reversal or just a brief recovery before a significant decline?

After months of downturn, meme coins and mainstream altcoins have recently demonstrated strong momentum. Many have recorded double-digit gains, reigniting market interest in risk assets. However, short-term rebounds can be misleading, and confirming a true bottom requires more evidence.

PEPE Coin Leads Short-Term Gains; Can Key Support Hold?

In this rally, PEPE coin has performed particularly well. According to recent data, it has surged 17.95% in 24 hours, continuing its recent strong trend. From a technical perspective, PEPE previously rose from $0.00000412 to higher levels. If it can stabilize above $0.00000487, it may regain the critical support at $0.00000570. Breaking this level could open the way for further upward movement toward the $0.00000939 to $0.00001221 range.

However, it’s important to note that as a meme coin, PEPE’s price is highly volatile. A short-term lead does not confirm a trend reversal; traders should pay attention to whether trading volume can effectively support the move to assess the sustainability of the rally.

Can ADA’s Technicals Confirm a Reversal?

Cardano (ADA) also warrants attention. The latest price shows ADA at $0.29, up 7.68% in 24 hours. The rebound has some technical support—after a prolonged decline, the coin found support at low levels, prompting a bounce.

If ADA can hold above $0.385, it may rise toward $0.4845. More critically, to truly reverse the previous downtrend, breaking through the resistance at $0.5453 is essential. However, similar rebounds have occurred multiple times in history but were ultimately suppressed by selling pressure. Confirming whether ADA has truly turned around requires observing if the closing price can stay above the previous resistance zone.

SHIB Oversold Rebound—When Will the Bottom Be Confirmed?

Compared to PEPE and ADA, Shiba Inu (SHIB)’s rebound appears more cautious. Latest data show a 5.01% increase over 24 hours, indicating a relatively mild upward move. This suggests that market confidence in SHIB is recovering more slowly than other altcoins.

Historically, SHIB has hit multiple lows during down cycles, experiencing nearly relentless declines that severely dampened investor confidence. Although it is attempting to recover today, without a stable higher close, it’s hard to confirm that the bottom has been reached. Similar rebounds in the past were ultimately suppressed by selling pressure, leading to new lows.

Rebound or Trap? Investors Must Exercise Caution

In this rally, mainstream coins have performed relatively steadily, while meme coins and risk assets have shown more aggressive moves. This partly reflects a return of risk appetite in the market. However, the key question remains: Is this a genuine reversal or just a short-term bounce within a downtrend?

From a technical standpoint, many coins face critical support and resistance levels. PEPE needs to hold above $0.00000487, ADA must confirm above $0.385, and SHIB needs to break previous highs. If these assets can effectively surpass resistance levels, the signals for a reversal become more reliable. Conversely, if they fall back after a brief rally, the risk of deeper declines increases.

For investors, there’s no need to rush into buying the dip. When assets are severely oversold, waiting for genuine upward momentum and confirmation of key levels can lead to rapid profit expansion. Currently, monitoring whether various coins can hold above recent highs and confirm reversal signals is crucial for assessing market turning points.