The shape of the cryptocurrency market is not as great as it may seem at first. Most of the bullish traction we have been witnessing in the past turned into dust and Bitcoin, XRP and other top-tier assets are struggling to recover even after reaching local support levels. Surprisingly, though, Shiba Inu is in a somewhat good state after an unexpected recovery fueled with trillions.
With the asset continuing to fall below its important technical levels, and showing almost no indications of a sustainable short-term recovery, XRP’s chart is becoming more and more bleak.
Every attempt at upward movement over the last few sessions has been swiftly thwarted, indicating that sellers are still in complete control despite slight increases. XRP is currently trading close to $2.26, significantly below its 50-day and 200-day moving averages, which have now established a verified death cross. This arrangement basically indicates that long-term momentum has turned sharply negative.
There have been a number of lower highs and lower lows in the market structure since late September, but there have been no notable volume spikes that would indicate institutional support or accumulation at these levels. The bearish narrative was only strengthened by the earlier this month’s failed breakout attempt above $2.50.
XRP is currently consolidating just above a precarious support zone around $2.20-$2.00, which could easily lead to a deeper correction toward $1.80 or even $1.60 if broken, rather than regaining lost ground. Weak momentum is reflected in the RSI around 40, which is perilously close to oversold territory and shows no significant divergence that could point to a rebound.
The issue is made worse by the lack of beneficial catalysts. There have not been any significant fundamental advancements in XRP’s ecosystem to offset the mounting technical harm. XRP continues to lag behind in terms of both price action and investor sentiment, in a time when other large-cap assets are demonstrating resilience or rotating into new narratives.
In other words, unless the asset convincingly breaks back above $2.60, it has no chance of recovering. Until then, XRP is still firmly in a downward trend, and any brief increases are more likely to be opportunities to sell than indications of a return to strength. The path of least resistance is still sharply downward for the time being.
After a protracted period of low volatility and weak sentiment, Shiba Inu bulls are finally beginning to show signs of life.
The largest increase in on-chain activity since early October, with 2.7 trillion SHIB tokens transacted in the past day, suggests that major holders may be repositioning for a possible rebound. The token is still having trouble holding above its 50-day moving average, which is still a significant resistance barrier close to $0.0000108, despite SHIB’s short-term attempt to recover the $0.000010 level coinciding with the increase in transaction volume.
The abrupt increase in activity suggests that accumulation may be quietly taking place despite the modest price move, with traders possibly using this zone to increase exposure before making a more significant move. On-chain metrics support this story. Exchange outflows increased by more than 63%, suggesting that a sizable amount of tokens have been transferred from centralized exchanges to private wallets.
Technical indicators, however, point to caution. With SHIB continuing to trade below the 200-day moving average and the general market structure displaying lower highs, the overall trend is still bearish.
The market should take note of the 2.7 trillion SHIB transactions, to put it briefly. Though price action still has the burden of proof, bulls are stirring. In the absence of a convincing close above $0.000011, SHIB runs the risk of fading like previous attempts. But if the buying pressure continues, this might be the first significant step in ending the months-long decline that has kept SHIB stuck close to cycle lows.
As selling volume starts to rise sharply amid its ongoing downtrend, Bitcoin (BTC) is flashing an increasingly concerning signal. This is a classic setup that frequently precedes a deeper and faster decline.
BTC has dropped to about $101,800 after failing to maintain support above $108,000. In just a few sessions, it has lost almost 7%, and more worrisomely, traders are becoming more active during the decline. Falling prices and decreasing volume usually indicate seller fatigue, but this is not the case.
The spooky aspect of this trend is that it suggests the selloff was motivated by conviction rather than hesitancy. The fact that Bitcoin broke sharply below its 200-day moving average, a crucial long-term indicator that is currently serving as strong resistance near $108,000, adds to the pessimistic narrative. A near-ideal bearish alignment is being completed by the shorter-term 50-day and 100-day EMAs sloping downward, which increases the likelihood of a prolonged downtrend.
With no signs of an oversold rebound, the RSI, which is currently hovering around 37, indicates that momentum is still weak. In terms of structure, BTC’s chart now displays a steep rollover after a failed symmetrical triangle breakout, which is a classic setup for a further decline.
Bitcoin may retest the $98,000-$96,000 range sooner than anticipated if selling pressure persists at this rate. If that level were to be broken, the downward momentum would probably accelerate toward $90,000, where there is still little support.
