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Shiba Inu (SHIB) Bloodbath: 5% Lost, Bitcoin (BTC) Loses $51,000, Minor XRP Death Cross? – U.Today

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This recent weakness in Shiba Inu has alarmed investors, as it signals the start of a bearish trend in the coming weeks.

The market is showing signs of reversal, as evidenced by increased selling pressure. Changes in sentiment can be due to a variety of factors, including high whale activity, which often precedes volatility due to the large amount of tokens they move. The current scenario suggests that the market is on a fragile path, with regional resistance forces firmly in place, indicating the market’s reluctance to push prices higher.

XRP/USDT chart by TradingView

Analyzing the chart, we can see that the immediate support for SHIB is at the level corresponding to the 50-day EMA. This level has historically acted as dynamic support that could indicate a potential rebound point for the price. A break below this could test the next support level marked by the previous low.

For the bullish scenario to materialize, SHIB will need to recover and break through any local resistance that is currently unopposed. For prices to rise, they will need to maintain momentum to break through the recent high trading volumes, which have been largely selling-oriented.

Bitcoin enters correction mode

Bitcoin has retreated from its recent highs and has failed to secure above $51,000. The failure to break through the $52,000 threshold resulted in a notable correction, suggesting a significant cooling down from the market’s overheated state.

Recent price movements reflect the market correction that many analysts believe is necessary to maintain long-term sustainability. Overextended markets often pull back to find new support levels, and this can be a healthy reset to the next level. Bitcoin’s performance over the past few days, while not particularly impressive, is consistent with typical market movements after a strong rally.

From a technical perspective, Bitcoin’s local support is currently located near its 50-day exponential moving average (EMA), a level that traders are closely monitoring for a possible pullback. If BTC price breaks below this moving average, the next significant support could be found in the $47,000-$48,000 area, which has historically served as both support and resistance.

If selling pressure continues, a break below the 50-day EMA could lead to a further plunge towards the $47,000 support zone. A breakout of this level could lead to further decline to the next support near the $43,000 to $44,000 area near the 100-day and 200-day EMA. If these levels are not sustained, the market could accelerate selling towards the $39,000 to $38,270 zone.

XRP remains suppressed

XRP’s chart shows a cross between the 100-day EMA and the 200-day EMA, a scenario that some may prematurely label as a “death cross.” However, let’s delve into a more nuanced interpretation.

A “death cross” traditionally refers to the crossover of the 50-day moving average below the 200-day line, indicating a potential long-term bearish trend. In the case of XRP, we observe that the 100-day EMA is below the 200-day EMA. While not a typical death cross, this event could still indicate bearish sentiment on the horizon.

XRP is currently hovering above a key support level, and if it breaks out, the price could fall towards the next key support zone. At the moment, the price is moving around the intersection of the two EMAs, which is an important turning point that can dictate short-term market trends.

To remain bullish, XRP needs to remain above the current support level and push back through the crossed EMA. A decisive move above these lines could invalidate the bearish signal and open the door to a rise to the previous resistance level.

About the author

Armand Sirignan

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