After weeks of intense downward pressure, the market is beginning to show early indications of stabilization, and the current structure points to the possibility of a proper market recovery. Even though the overall trend is bearish, assets like XRP, BTC and SHIB have a chance to gain even better positions before the new trading week.
More stable, but less interesting
XRP is currently moving sideways rather than continuing its sharp decline after rising from recent lows. Following a severe sell-off, price action is trying to hold a support zone rather than making aggressive new lower lows. The double bottom story is created by this area’s second touch along with a slight bounce. The market as a whole may become more confident as traders search for indications that risk is returning since it indicates that sellers are having difficulty pushing the asset much lower.
Although the recovery is still in its early stages, the pattern itself sets a positive tone. When accompanied by improving momentum and stabilizing volume, which are both gradually emerging, double bottoms typically perform best. The structure may move from a straightforward consolidation phase into a more significant recovery phase if XRP maintains its defense of this base, which might raise sentiment among altcoins as well.
There are a few price points that stand out and should not be disregarded at this time. The first crucial area, which is located at about $1.40, serves as instant support and determines whether the double bottom is still true. The bullish argument would rapidly deteriorate if this level were lost.
The first resistance area above the current price where short-term sellers might reappear is between $1.52 and $1.55. Regaining it would support the recovery argument. Major moving averages converge between $1.75 and $1.80, which is a higher target to keep an eye on and a crucial confirmation zone for any larger trend reversal. Right now, XRP is still in the decision-making stage.
Bitcoin is compressed
The price action of Bitcoin is compressed into a narrow range at this crucial technical moment, which may determine the asset’s course over the next few weeks. Following a dramatic decline from higher levels, Bitcoin has entered a consolidation phase characterized by a narrowing triangle pattern.
This is a straightforward problem: the price is right on the brink of that formation, and the next action could determine whether the market stabilizes or goes into another downward trend. A noticeable loss of momentum is evident in the most recent structure. Due to several unsuccessful attempts at recovery, Bitcoin is currently trading below significant moving averages, maintaining the general downward trend.
However, the price has begun to coil, making higher lows against a comparatively flat resistance line rather than immediately collapsing. This results in a pressure zone where sellers continue to rely on the market from above while buyers attempt to defend short-term support.
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They stand for uncertainty, but ultimately, that tension is released with a breakdown or breakout. The likelihood that support will give way is increased by Bitcoin’s current frequent testing of the lower boundary. As stop-losses and sidelined sellers reenter the market, a clear decline below the triangle would probably allow the larger bearish move to continue.
Alternatively, put this range is a real-time decision point rather than merely another pause. The main area that traders are keeping an eye on is the current consolidation zone, which is close to the mid-$60,000 range. Maintaining the short-term stabilization narrative requires holding above it.
Losing this level, however, might hasten the decline toward the next structural support, which is close to the low-$60,000 area, where buyers previously intervened during the initial sell-off. Right now, Bitcoin is still in a state of equilibrium between exhaustion and continuation. In order to regain control and confront higher resistance zones, bulls require a clear break above the triangle resistance, whereas bears only need one significant push below support to validate the subsequent downward wave.
The market is essentially at the edge, and the outcome of this range will probably influence sentiment that permeates the entire cryptocurrency market in the near future.
It is not easy for Shiba Inu
With price action confined between a rising support trendline and the 26-day EMA overhead, Shiba Inu is presently trading in a tight and uneasy technical position. Bullish and bearish pressure are colliding in a clear compression zone created by this setup, effectively trapping the asset while traders await guidance.
Short-term support from the rising trendline has kept SHIB from completely collapsing following recent volatility. Every time the price has approached this rising line, buyers have intervened, indicating that some market players are attempting to establish a local base. Recoveries have, however, frequently stalled close to the 26 EMA, which still serves as dynamic resistance.
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Every rejection from this moving average maintains momentum on the bearish side and strengthens selling pressure. This is the reason why the current state of affairs is precarious. The price usually makes a decisive breakout when it is pinned between a declining moving average and rising support.
A breakdown could result in additional downward pressure if SHIB is unable to maintain the trendline, which could drive the asset toward lower support zones and exacerbate the already cautious sentiment. Technically speaking, this move would be seen by the market as a confirmation that sellers are still in charge. However, many investors are keeping a close eye on a clear upside scenario.
Buyers have finally absorbed selling pressure if there is a clear breakout above the 26 EMA. Such a move has the potential to swiftly change momentum, causing short-term traders to adjust their positions and pave the way for a more extensive recovery. The structure is now so compressed that even a slight bullish push could result in a significant increase.
