The recent price performance of Ethereum is not encouraging, and the cryptocurrency is perched on a precipice. ETH is trading at $2,508 ETH, and the 200 EMA is now its last hope. Ethereum has historically found strong support at the 200 EMA, but this time around, things are different. There is little indication that the bulls have what it takes to hold this level for very long, and the price action is displaying weakness.
Ethereum’s explosive rise in April and May now appears to be a fading memory when viewed on a larger chart. In a narrow channel the asset has been grinding sideways since the breakout momentum completely stopped. With ETH currently testing the channel’s lower bounds, this consolidation has finally broken down. Another concerning indicator is the lack of buying volume, which is a crucial component that has dried up and supported the pessimistic outlook.
The 100 EMA, which is located close to the $2,250 zone, is the next reasonable target for the price to find support if ETH loses its hold on the 200 EMA. That would eliminate the bullish surge of the previous month and represent a substantial decline from current levels. Another critical psychological level is the 100 EMA; if it moves, Ethereum may be in for an even more severe correction.
Indicating that neither buyers nor sellers are really pushing, the RSI indicator is also rolling over and is presently trapped in a neutral zone. But the bears are more likely to gain control as volume slows and momentum wanes. Ethereum may be poised for a breakdown that would cause it to plummet below $2,250 and approach the 100 EMA support zone, barring a sharp spike in demand. ETH appears to have lost the battle, but the next few days will be crucial.
XRP will face it
XRP is poised on the verge of a pivotal moment that could determine its course for weeks to come. The 200 EMA, a significant long-term support level that has historically served as a strong base for the asset, is just above the $2.15 mark where XRP is currently trading. But there is a growing indication from the price action that this support is being threatened. A breakout, or breakdown, is inevitable because of the downward pressure exerted by the descending trendline that has limited XRP’s movement over the last few weeks.
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For XRP the 200 EMA and the downtrend resistance line are forming a traditional battle zone, and the result will decide whether the bulls can regain ground or if the bears will take complete control. The volume profile is even more worrisome. The volume of trading has been continuously dropping, suggesting that neither party is committed. It is common for this drying liquidity to occur before a more significant move. A sharp decisive move, either a bounce or a disastrous drop, occurs when price tests a crucial level like the 200 EMA in low volume situations.
A breakout above the descending trendline at $2.20 might pave the way for a relief rally back toward $2.50 and higher if XRP can maintain this level and buyers intervene with conviction. The psychological $2 mark would be the next reasonable target followed by deeper retracements toward $1.80 if the 200 EMA finally gives way.
A possible rebound is indicated by the RSI’s precarious position just above the oversold zone. However, it is difficult to place a wager on a bullish scenario at this time without a break of the trendline and an increase in volume.
Shiba Inu on edge
The future of this well-known meme coin could be determined by the market’s next action as Shiba Inu is perilously close to the edge. Now trading close to $0.0000128, SHIB has broken through a critical descending support line, which is usually a major warning sign for additional price declines. Additionally, SHIB has firmly broken below the 50 EMA and is currently glaring down at its most recent lows, raising the possibility that it will retest the extremely low levels of early 2025.
Every attempt to recover prior support levels has been swiftly thwarted by enduring selling pressure, indicating definite bearish price action. A concerning indication that the market might not be prepared for a recovery just yet is the chart’s declining volume, which emphasizes the lack of buyers. A warning light is flashing on the RSI, which is presently hovering close to the 38 mark.
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It is getting close to oversold territory, which occasionally signals a rebound, but it also points to a market that has been losing steam for weeks. The likelihood of SHIB falling even further, perhaps testing the crucial $0.0000114 level or worse, is high if sellers maintain their dominance. If buyers are able to intervene forcefully, there is a chance for a quick reversal, though.
A short-term relief rally may be triggered if volume starts to spike after the classic capitulation move of breaking the descending trendline took place. Let’s face it though: caution is definitely necessary until we witness that volume increase and a clear reclaiming of the 50 EMA. All things considered, SHIB is at a critical juncture. Ironically, this breakdown might be the last shakeout before a bounce, or it could confirm a bearish continuation.
