The situation on the market is not getting better any time soon, as the new week began with a substantial price drop across multiple assets, which could indicate an aggravation of the current market situation.
Clearly bearish SHIB
Because the structure is still clearly bearish, the answer to the question of whether SHIB will finally stabilize at this point or continue to bleed is not clear. Every major moving average, the 50, 100 and 200, are stacked above price and pointing downward. Instead of a trend attempting to bottom out, that is the hallmark of a protracted downtrend.
The present price range is between $0.0000082 and $0.0000080, which has previously served as a reaction level. Buyers are frequently entering this range — not because SHIB is doing well but rather because the market typically pauses following sharp protracted selling. The RSI is currently in the low-40s, which indicates that it is not oversold but is getting close to a potential momentum bounce. Nothing here, however, shouts “reversal.”
The volume on the most recent red candles increased, indicating that sellers have not run out of options yet. Additionally, the market is not interested in firmly defending SHIB, as evidenced by the decline over the last two weeks, which was clear, steady and devoid of any significant counterpush. The best-case scenario is a brief technical rebound toward the 50-day EMA if SHIB is able to stabilize at this level.
Since SHIB has not been able to recover that line since mid-October, it would probably serve as hard resistance because it is located well above the spot price. Only the notion of short-term mean reversion lends credence to that speculative rebound. The more plausible scenario is that SHIB either grinds lower or retests the recent lows after trading sideways for a while and failing to produce significant buying pressure.
The chart shows no obvious bullish catalyst, no significant volume increase and no structural change. Therefore, anticipating a complete reversal is premature, even though the asset may pause at this point. Instead of viewing this area as a confirmed bottom, investors should view it as a possible resting place.
XRP barely there
The candles on XRP’s chart indicate that the asset is barely hanging on inside its descending channel, and that the market is testing that lower boundary once more. XRP is situated on a structurally vulnerable section of its chart.
The initial touch of a channel bottom typically indicates seller fatigue and a possible relief bounce. However, a price return this fast on a second try typically indicates the opposite: buyers are not demonstrating enough dedication to defend support, and sellers are still in charge.
That weakness is validated by the price action. The most recent daily candle for XRP sliced downward with increasing volume, destroying earlier attempts to recover the mid-channel area around $2.20-$2.25. RSI is moving back toward the low 40s, indicating that the market is not oversold enough to trigger an automatic mean reversion. Momentum indicators are currently in a bearish zone.
You Might Also Like
The 50, 100 and 200 EMAs are all stacked above price and sloping downward, which is a classic downtrend structure rather than the start of a recovery, according to the moving averages. Therefore, the question is whether it matters at all to fall below the descending channel.
In actuality, it does, but not in a way that significantly alters the trend. The market has been indicating for weeks that XRP has not established a base, has not produced bullish volume and has not refuted the larger bearish structure. A clear break below the lower band would only confirm this.
The price would probably drop to new local lows between $1.95 and $2.00, possibly even lower if liquidity dried up. If XRP somehow manages to hold the line and stay inside the channel, the most investors should expect is another weak bounce toward the midrange. However, it would not be a reversal but rather a countertrend move. Buyers now bear the entire burden, and they have not yet shown up.
Ethereum takes another hit
At about $2,829, Ethereum recently printed a classic death cross on the daily chart, with the 50-day EMA falling below the 200-day EMA. By textbook standards, that is a bearish signal, suggesting trend exhaustion and the potential for deeper downside. However, ETH’s current structure is more complex than the term “death cross” suggests, and treating it as an inevitable catastrophe oversimplifies the situation.
First of all, the cross did not suddenly appear. Since the September breakdown, ETH has been in a persistent downward trend, with lower highs, lower lows and repeated failures to reach the 100-day EMA. The death cross is not the start of a bearish trend but rather its confirmation after weeks of activity. To put it another way, the harm was done well in advance of the averages crossing.
You Might Also Like
Second, look at the price reaction. ETH pulled back sharply but stayed above the November low, not collapsing on impact. This indicates that this was probably priced early by the market. In this case, a death cross is more of a lagging indicator, reflecting past weakness, than a catalyst for new selling. Normally, a death cross is most significant when it coincides with new downward momentum.
However, to completely ignore it would be naive. The unsuccessful attempt to recover $3,150 indicates that bulls are not powerful enough to regain momentum, and ETH continues to struggle beneath all significant moving averages. If the current support zone around $2,750-$2,800 gives way, ETH could easily slide toward $2,600, or even retest the $2,400 region where prior demand stepped in.
What matters now is whether ETH can form a higher low, something it has not achieved since early autumn. In the event that buyers intervene and the market stabilizes above $2,800, the death cross will no longer be as dire. If not, the cross might serve as a warning that the bearish structure is still in its early stages.