This recent downturn on Shiba Inu has alarmed investors as it indicates a potential bearish trend setting in for the coming weeks.
The market is exhibiting signs of a reversal, evidenced by a surge of selling pressure. The sentiment shift can be attributed to various factors, including high whale activity, which often precedes volatility due to the substantial volume of tokens they move. The current scenario suggests that the market is treading on a fragile path, with local resistances firmly in place, demonstrating the market’s hesitation to push the price upward.
XRPUSDT Chart by TradingView
Analyzing the chart, SHIB’s immediate support is found at a level that corresponds with the 50-day EMA. This level has historically served as a dynamic support that could indicate a potential bounce back point for the price. A breach below this could lead to a test of the next support level, marked by previous lows.
For a bullish scenario to materialize, SHIB would need to recover and break through the local resistance, which is currently unchallenged. An upward price action would need to sustain momentum to break past the recent high trade volumes, which have been predominantly sell-oriented.
Bitcoin enters correction mode
Bitcoin has retracted from its recent high, failing to secure its stance above the $51,000 mark. The inability to breach the $52,000 threshold has resulted in a notable correction, signaling a cooldown from the market’s substantially overheated state.
The recent price action reflects a market correction that many analysts consider necessary to maintain long-term sustainability. Overextended markets often retreat to find new support levels, which can be a healthy reset for the next leg up. Bitcoin’s performance in the past few days, while not particularly impressive, aligns with typical market behaviors following strong rallies.
From a technical standpoint, Bitcoin’s local support now sits near the 50-day Exponential Moving Average (EMA), a level watched closely by traders for potential bounce backs. If BTC’s price dips below this moving average, the next significant support is likely to be found at the $47,000 to $48,000 region, which has historically acted as both support and resistance.
If selling pressure continues, breaking below the 50-day EMA could trigger a steeper decline toward the $47,000 support zone. A breach of this level may lead to a further slide to the next support around the $43,000 to $44,000 area, which is in the vicinity of the 100-day and 200-day EMAs. Should these levels fail to hold, the market might see an accelerated sell-off toward the $39,000 to $38,270 zones.
XRP remains suppressed
XRP’s chart shows the crossing of the 100-day and 200-day EMAs, a scenario some might prematurely label a “death cross.” However, let’s delve into a more nuanced interpretation.
A “death cross” traditionally refers to the crossover of the 50-day moving average beneath the 200-day line, signaling potential long-term bearish trends. In XRP’s case, we observe the 100-day EMA crossing below the 200-day EMA. While not a classic death cross, this event could still be indicative of bearish sentiment brewing on the horizon.
XRP currently hovers above a crucial support level, which, if breached, could see the price slide toward the next significant support zone. As of now, the price oscillates around the intersection of the two EMAs, a critical juncture that could dictate short-term market dynamics.
To stay bullish, XRP needs to maintain its ground above the current support levels and push back through the crossed EMAs. A definitive move above these lines could invalidate the bearish signal and open the door for an ascent toward previous resistance levels.
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