Market optimism has been sparked by Bitcoin's recent surge above $90,000

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, which indicates that momentum is waning.

Moreover, soft volume can be disastrous for trend continuation in a market where conviction counts.

Bitcoin faces crucial breakout

Despite a substantial recovery from April lows, there is no indication of increasing buyer interest to support this rally. Bulls are growing more apprehensive as volume has been consistently decreasing since the breakout.

As Bitcoin hovers slightly below the psychological $95,000 mark, it faces the risk of forming a local top and rolling over in the absence of stronger inflows.

Although this isn't quite the point of surrender or collapse, it is beginning to feel overextended. Technically, Bitcoin is above all major moving averages, such as the 50-day, 100-day, and 200-day, signifying structural strength. At 66, the RSI is on the rise but remains below overbought levels, leaving some room for maneuverability.

However, the short-term outlook is more precarious than it appears. It is highly 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 sharper move above $95,000 with fresh volume might spark a rally back toward $100,000, but that scenario calls for more than just optimism.

Solana back down?

After a brief rally, Solana is losing momentum as price action suggests a waning bullish structure. With a current price of about $146, the asset is dangerously close to the crucial $140 support, which is a bull's dream. If this level is breached, the 26-day EMA, currently trading at $139, will likely be retested.

Exhaustion is evident from the chart. The 100-day and 200-day moving averages, both standing at $151 and $162, form a confluence of resistance that Solana failed to pierce despite a strong rebound from March lows. Momentum indicators like the RSI show price action stalling just below this zone, creating a bearish divergence as it plateaus around 58.

The combination of decreasing volatility and the inability to generate volume on recent green candles suggest that demand is fizzling out. As SOL faces difficulty in gaining traction above significant resistances, traders appear to be booking profits. The 26 EMA at $139 will be the first likely landing zone if sellers take control and push the price lower from $140. A more severe correction might reveal the $131 level, aligning with the 50-day MA and prior consolidation support.

Overall, Solana's market structure is still vulnerable. The asset seems to be entering a distribution phase rather than preparing for uptrend continuation, and the rally from early April lacks strong follow-through.

If Solana does not see a sharp spike in volume and transforms $151 into support, the short-term outlook is bleak. Without external stimuli or renewed buyer interest, momentum is waning, and SOL may experience further decline, returning to the moving averages it struggled to regain only a few weeks ago.

Dogecoin still good long term

Dogecoin is once again on the verge of entering a correction as it shows signs of exhaustion in its recent short-term rally.

Dogecoin is currently trading at about $0.17, placing it just below the 50-day moving average, which has historically acted as both dynamic support and resistance. However, the longer-term picture shows more promise, with Dogecoin presenting a more optimistic outlook on the one-week chart. Here, the price is comfortably positioned above the 50 EMA.

Since its November peak, DOGE has been stuck in a persistent downward trend, with price action forming lower highs and lower lows. Despite a recovery from the $0.14 area, Dogecoin has yet to fully reclaim key resistance levels. If the price is rejected close to the 50 EMA, bulls may not have sufficient power to overcome overhead resistance, especially in the $0.18-$0.19 range.

Compared to its meme coin peers like SHIB, which at least exhibit on-chain accumulation, Dogecoin's recent price action is more disappointing. However, Dogecoin does not have any fundamental catalysts or speculative momentum to drive its price. A steady decrease in trading volume indicates waning interest, and the asset is still capped below the 200-day MA at $0.21.