After a dramatic decline: Which factors are weighing on XRP and what does this mean for investors?
XRP Shows Worrying Weakness
XRP is currently trading at $2.19 and is showing worrying signs of weakness. This downward movement already led to a drop to $2.00 earlier this week. While today’s recovery offers a brief respite, the overall market situation remains tense. The daily chart indicates a descending channel characterized by lower highs and lows, confirming the long-term downtrend. Hopes for a short-term recovery were dashed by the recent rejection around the 26- and 50-EMA zones, located between $2.35 and $2.41. XRP is currently trapped in a bearish structure until this area is clearly broken. Of particular concern is the proximity to the key support at $1.94, the 200-EMA, which has been significant in recent months.
Shiba Inu Suffers Setback
Shiba Inu has lost nearly 10% of its value and fallen back to pre-rally levels, erasing all recent gains. The current price is $0.00001273, just slightly above key support, confirming that the recent surge was a classic fakeout—a short-term rally that quickly collapsed. A few days ago, SHIB still showed potential when the price rose above the 50-EMA and above the resistance at $0.00001400. Traders had hoped that the 100-EMA could be reached at around $0.00001640. However, momentum quickly lost momentum, and SHIB began to decline instead of buying, completely erasing the short-term breakout gains.
Shiba Inu’s biggest current weakness is its inability to generate sustained trading volume. The rally generated short-term interest, but subsequent demand was lacking. The RSI, at 43.91, also offered little hope for a quick recovery. The price is currently hovering in the support zone between $0.00001270 and $0.00001300. If this support breaks, the $0.00001200 level, which served as a key accumulation zone in March, could be the next target.
Bitcoin Struggles for Stability
Bitcoin is currently trading at around $83,358, struggling to maintain stability above the crucial $80,000 level. The digital asset’s obvious weaknesses are indicated by both the breakout of the ascending trendline and the lack of buying interest in this price segment. Its 100-EMA, which previously served as dynamic resistance, is now around $88,000, and Bitcoin has failed to hold this level.
A drop below $80,000 could invalidate the market’s uptrend. This bearish outlook is supported by weak trading volume, which indicates a lack of buying interest. The RSI is currently around 44.17, indicating that momentum is trending towards bearish territory. A break below $80,000 would place the next support at around $76,000, followed by $72,000, which has served as key accumulation levels in previous corrections. A deeper correction towards $68,000, where the long-term 200-EMA is located, could also be possible if this area is breached.
In summary, both XRP, Shiba Inu, and Bitcoin are facing challenging market conditions that are increasing volatility and uncertainty in the cryptocurrency market.
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