The market is cooling off one week after the critical cryptocurrency market crash that essentially ended the first phase of market recovery. The possibility of a further reversal is yet to be determined.
Bitcoin’s narrative finally eases
The bullish narrative surrounding Bitcoin may finally be coming to an end. Technical and momentum indicators are still flashing bearish warnings, and despite brief recovery attempts, the daily chart’s current setup indicates that Bitcoin may drop below $100,000 in the near future.
Bitcoin, which is currently trading at about $107,900, is still below its three main moving averages, the 50-, 100- and 200-day EMAs. These EMAs have all begun to slope lower, indicating a midterm trend reversal. The market sentiment was essentially reset when the recent crash below the $110,000-$112,000 range erased months of steady accumulation.
Despite slight intraday bounces, the RSI, which is currently at 38, is still close to oversold territory and lacks bullish momentum. The inability to recover the 200-day EMA, which is presently close to $108,000, supports the notion that structural weakness, not a transient correction, is now affecting Bitcoin. Historically, the start of a protracted bearish phase is indicated when Bitcoin drops and remains below this line.
The volume of the market supports this view, buyers have stopped making purchases, and sell pressure is steadily increasing during rallies. The outlook is made worse by macro conditions. Following the significant liquidation events earlier in the week, liquidity is becoming more constrained across cryptocurrency markets, and investor confidence is still brittle.
The $100,000 psychological threshold, which was once thought to be the next big goal, now appears to be more of a ceiling than a practical objective. The fact that Bitcoin is still in a bull market should not be misunderstood. A prolonged period of retracement is suggested by the combination of technical breakdowns, waning trend strength and inadequate market breadth. The path of least resistance stays downward unless Bitcoin decisively and strongly recovers above $114,000, possibly retesting below $100,000 levels before a true recovery can start.
XRP finally catches a breath
Following weeks of unrelenting selling pressure, XRP’s decline seems to have stopped suddenly, raising the possibility that the asset is about to enter a brief recovery phase. The price stabilizing in the $2.30-$2.40 range may signal the start of a more extensive reversal, because both market structure and momentum indicators suggest that sellers are running out of options.
For the first time in months, XRP fell below its 200-day moving average, sparking a market-wide panic. The recent plunge was brought on by the larger crypto meltdown. The subsequent sharp rebound, however, suggests that demand is high at lower levels. The most recent daily candles display rising volume on green bars and shorter wicks, which are classic indicators that selling momentum is waning.
The RSI is at 37, indicating an oversold situation, and XRP has formed a local support zone around $2.25, according to technical analysis. In the past, when RSI levels fall below 40, XRP has experienced strong reactions, frequently leading to multi-day rebounds. Furthermore, it is possible that large buyers intervened to absorb excess sell orders, resetting the short-term equilibrium, given the abrupt halt in the downward momentum that followed the extreme liquidation event.
Currently, $2.60-$2.65 is the crucial area to monitor. A short-term bullish shift could be confirmed by a breakout above that resistance, which might push XRP back toward the $2.80-$2.90 range. However, if current levels are not maintained, the path toward $2.00 may reopen.
In summary, the sudden end of XRP’s crash appears to be more of a quick shift in sentiment, with buyers subtly regaining control and sellers having overextended. Even though the overall market is still cautious, this might be the first indication of an impending retracement and the beginning of a more robust recovery for XRP.
Pressure on Shiba Inu eases
Shiba Inu is reviving after weeks of excessive selling pressure, and it is obvious that it does not wish to stay at its recently added zero. Following a brief period of stability, the price of the meme coin is currently making an effort to rise above the $0.000010 mark, a crucial psychological threshold that could decide whether the current market correction results in a significant recovery or a deeper decline.
As of writing, SHIB is trading at about $0.00001004, indicating a slight daily gain. More significantly, the asset seems to have effectively stabilized above $0.0000095, which was once a high-volume zone and served as local support. This downtrend halt is accompanied by an increase in trading volume and a flattening RSI between 37 and 39, which suggests that accumulation may be starting while sellers are losing ground.
Rekindled whale accumulation, a modest improvement in overall market sentiment and the expectation of ecosystem updates within the Shiba Inu network could all be contributing factors to the recent recovery. The on-chain data from SHIB also shows a slowdown in large outflows, which could mean that major holders are holding instead of dumping, which usually happens before local recoveries.
Technically speaking, a successful break above $0.0000105-$0.0000108 might validate a brief reversal, paving the way for a short-term move toward $0.0000115 and possibly even $0.000012. The recent gains could be erased, though, if $0.0000095 is not held above.
Shiba Inu appears committed to regaining $0.00001 as a starting point for recovery for the time being. This could be the start of SHIB’s next attempt to regain its lost momentum and possibly erase that unwanted zero faster than many anticipate, if the market stays stable and buying pressure increases.