The market is facing catastrophical consequences of the most recent price plummeting, and it’s unclear whether we will go back to where most assets were trading or if they will plunge lower without a recovery possibility in the foreseeable future.
Shiba Inu scratches bottom
In what seems to be the most severe collapse in the token’s recent history, Shiba Inu has officially dropped to its lowest level since early 2023. The meme coin, which was once the epitome of retail speculation, is currently in a deep structural weakness phase, with no fundamental or technical indications of a recovery in sight.
The price of SHIB finally gave in after tightening within a descending triangle for several months. It sliced through all significant support levels and broke below the $0.000010 mark. This decline wipes out almost all of the gains made over the previous two years and confirms a new annual low. The asset has essentially reached its historical support zone, which last served as a launching pad during the 2023 market cycle, with its current price hovering between $0.000009 and $0.000010.
However, the current climate is not as hopeful as it was in earlier cycles. Although the Relative Strength Index (RSI), which is positioned close to 30, indicates that SHIB is oversold, there is currently no discernible indication of accumulation or reversal, and trading volume is still low.
Shiba Inu’s delicate structure is further put under strain by the weakness of the overall market, which is exacerbated by macroeconomic uncertainty and waning speculative appetite. An ongoing downward slope of the 200-day moving average has confirmed a long-term bearish trend. Under it, the 50 and 100 EMAs have formed a full death cross, a pattern usually linked to prolonged downward movement.
Although it’s reasonable to assume that SHIB has probably reached its technical bottom at this time, a recovery is not necessarily imminent. Any brief rebound is likely to be met with selling pressure in the absence of new catalysts, robust on-chain activity, or renewed investor demand.
Bitcoin isn’t struggling
Bitcoin has once again shown its tenacity in the face of the recent meltdown that rocked the cryptocurrency market. Given the magnitude of the liquidation that affected the larger market, Bitcoin’s decline was remarkably contained, coming in at less than 10%, while many other altcoins experienced double-digit losses. Bitcoin’s dominance and fundamental structural strength are demonstrated by its ability to hold above the $110,000 mark.
The 200-day moving average (black line) at about $107,900, a historically significant level that has frequently served as a springboard during previous corrections, continues to provide strong support for the price, which has dropped significantly from its $124,000 local high on the daily chart. The technical structure is still positive. A medium-term bullish bias is maintained by the upward trending 50-day (orange) and 100-day (blue) moving averages.
With its current range of 41 to 59, the RSI indicates consolidation rather than breakdown, as momentum has cooled without going into a true bearish zone. On a larger scale, Bitcoin’s stability in the face of worldwide volatility is noteworthy. Even though ongoing equity drawdowns and tariff tensions have caused panic in riskier assets, Bitcoin still acts as a relative safe haven in the cryptocurrency space.
Even in uncertain times, its store-of-value positioning is highlighted by its smaller retracement when compared to Ethereum, Shiba Inu and other high-beta tokens. The lesson for investors is unmistakable: Bitcoin is still the gold standard. Market participants should concentrate on important support levels between $108,000 and $107,000 as well as possible upside recovery targets close to $118,000 and $122,000 during steep declines, rather than panic selling.
Healthy buying activity is seen in the vicinity of these zones, according to volume analysis, indicating that strong hands are building up. The crypto market appears battered, but Bitcoin’s relative strength indicates that the cycle is far from over. Bitcoin’s 10% decline is a pause in a longer, still-existing uptrend, not a collapse.
XRP takes plunge
First, there are obvious indications of seller exhaustion in the price structure of XRP. Around $2.06, the asset fell below its 200-day moving average, but it quickly recovered with significant volume. Known as a flush and reclaim, this pattern implies that big buyers may have intervened to absorb panic-driven selling. Such XRP reclaim patterns have historically preceded 30% to 50% short-term rallies, which, if the momentum continues, would correspond with a move toward $1.
The second indicator of highly oversold conditions is the Relative Strength Index (RSI), which is presently trading close to 27. Every time XRP entered this zone in previous cycles, there was a multi-week recovery. RSI reversals from levels below 30 have frequently resulted in quick inflows of liquidity, especially when short sellers start to liquidate their holdings.
Third, a recovery thesis is supported by on-chain activity. The sharp increase in XRP’s ledger transactions and payment volume in recent days suggests that network activity increased even as prices fell. Price and utility divergence may encourage speculative optimism, which is a crucial component of cryptocurrency rebound rallies.
Macroeconomically, the market’s overreaction to international tariff tensions might also be stabilizing, which would support XRP’s recovery in tandem with Bitcoin’s relative strength.
XRP’s setup for a technical rebound toward $1 appears realistic, even though sentiment is still brittle. Traders should wait for confirmation above $2.8-$3.0 in order to confirm the breakout and get ready for a possible bullish reversal as soon as possible.
