The cryptocurrency market is currently grappling with severe consequences from a recent price decline, casting uncertainty over the future trajectory of many assets. Among the hardest hit is Shiba Inu, which has descended to its lowest point since early 2023. Once a darling of retail investors, the meme coin is exhibiting significant structural weaknesses, with no apparent indicators of recovery on the horizon.
Shiba Inu’s drastic fall follows a protracted period of consolidation within a descending triangle pattern. The token ultimately broke through crucial support levels, plunging below the $0.000010 threshold. This steep decline has erased nearly all of the gains accrued over the past two years, establishing a new annual low. The asset now finds itself at a historical support zone, a level that previously served as a launchpad during the 2023 market cycle. Currently, its price fluctuates between $0.000009 and $0.000010.
Despite the Relative Strength Index (RSI) nearing the oversold territory at close to 30, there are no signs of accumulation or reversal, and trading volume remains low. The token’s fragile condition is compounded by the overarching market downturn characterized by macroeconomic uncertainty and reduced speculative interest. A sustained downtrend of the 200-day moving average reinforces the long-term bearish sentiment, while the formation of a death cross between the 50 and 100 Exponential Moving Averages (EMAs) suggests a prolonged downward movement.
Though speculators may surmise that Shiba Inu has reached its technical bottom, a recovery is not imminent. Any potential rebound is likely to encounter heavy selling pressure unless new catalysts or robust investor demand emerge.
In stark contrast, Bitcoin has showcased remarkable resilience amid the recent market turmoil. Despite widespread liquidation affecting the broader cryptocurrency landscape, Bitcoin’s decline remained relatively moderate, at less than 10%. Many altcoins, on the other hand, faced double-digit losses. Bitcoin’s ability to maintain levels above $110,000 underscores its dominance and structural strength within the market.
The pivotal 200-day moving average at approximately $107,900 has historically acted as a substantial support level during corrections, providing stability even as Bitcoin retraced from its recent local high of $124,000. The technical framework stays bullish, underpinned by the upward trends of the 50-day and 100-day moving averages.
The RSI, currently ranging from 41 to 59, signals a consolidation phase rather than outright decline, suggesting that momentum is cooling without veering into a true bearish phase. Bitcoin’s stability amidst global volatility stands out, especially as it retains a store-of-value status, evidenced by lesser retracements compared to higher-risk tokens like Ethereum and Shiba Inu. Investors are advised to focus on crucial support levels between $108,000 and $107,000, with potential recovery targets marking upside near $118,000 and $122,000.
Meanwhile, XRP appears to be at a critical juncture, exhibiting telltale signs of seller exhaustion. The asset recently dipped below its 200-day moving average around $2.06 but quickly rebounded with significant trading volume. This pattern, known as “flush and reclaim,” suggests potential intervention by larger buyers to absorb panic selling—a setup that has historically led to short-term rallies ranging from 30% to 50%.
Further underscoring this bullish potential is XRP’s RSI, which lies at approximately 27, indicating highly oversold conditions. Past occurrences of XRP entering this zone have often precipitated multi-week recoveries, with liquidity inflows typically emerging when short sellers are compelled to exit their positions.
In addition to the technical indicators, an uptick in on-chain activity, including increased ledger transactions and payment volume, suggests that user engagement remained robust despite the falling prices. This price-utility divergence may trigger optimism, essential for any significant cryptocurrency recovery.
As the market reacts to international tariff tensions, a potential stabilization could further bolster XRP’s recovery, especially in conjunction with Bitcoin’s demonstrated strength. A technical rebound target of $1 appears attainable, although traders would be wise to await confirmation above the $2.8-$3.0 resistance levels to affirm a possible bullish reversal.
