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Market Faces Sharp Retracement as Bears Take Control
The cryptocurrency market has seen a significant decline and is testing the strength of bullish sentiments.
XRP Approaches Key $2 Support Amid Bearish Pressure
Following a major decline of 6% in a single day, the XRP price is now below a crucial level of support, and currently trades close to $2.20. The decline has put the $2.00 limit shortly and is an important challenge for bulls following several unsuccessful attempts to reach the higher levels of resistance. The most alarming thing is that this price has declined under the 100-day Exponential Average (EMA), which is an important indicator of trend that traders use. If a trend of selling continues throughout the market, the break could indicate an ongoing decline.
The outlook for technicals indicates XRP is stuck in a downward channel, with lower lows formed since the peak in December. Inability to overcome the support that lies between $2.37 and $2.42 increases the negative sentiment. In addition, the increasing number of red candles suggests a rise in market dominance, while buyers are retreating. The psychological resistance at $2.00 is the next important mark to monitor, which will be followed by $1.93 which is where the 200-day EMA is currently.
If the support levels are not met then losses may accelerate towards the $1.75 area, which had earlier served as an important help during the late 2024 period of consolidation. Its Relative Strength Index (RSI) has fallen to 42, which indicates a rising bearish trend, while also leaving plenty of room for the possibility of volatility. The possibility of a short-term recovery is still there when XRP is trading at $2.00 However, bears have to swiftly take back the 100-day EMA to take back control of the current trend.
Shiba Inu’s Bullish Momentum Stalls at Resistance
Shiba Inu (SHIB) has repeatedly struggled to reach the crucial level of resistance, which has raised doubts about the short-term bullish prospects. A promising rise, which briefly saw prices rise above $0.00001400, SHIB has retraced significantly, trading at $0.00001327–down by more than 5 percent over the day. A rejection of the 50-day EMA as a persistent resistance zone during SHIB’s downtrend has further weakened bullish optimism.
SHIB’s failure to keep its upward momentum led to what appeared to be a typical fakeout that disappointed traders hoping for the possibility of a break. Although the currency initially crossed a trendline that was descending trendline, the absence of any volume or follow-up promptly ruled out the movement. SHIB has since returned to the previous range of trading, which suggests that investors may have acted too early without verifying the bullish trend.
A rising selling pressure, as well as an increasing volume, indicates that traders have been selling stocks as confidence dwindles. The RSI has fallen to 47, which indicates an upward shift in the direction of momentum. SHIB should protect the $0.00001300 support level to stop any further decline. A break below this level could push prices toward the $0.00001200-$0.00001230 region. As long as SHIB successfully breaks through the 50-day EMA and continues to gain and continues to gain momentum, the possibility of more losses remains very high. This once promising rally serves as stark validation of genuine trend reversals need perseverance and determination.
Dogecoin Risks Falling Below $0.10 as Bearish Trend Strengthens
Dogecoin (DOGE) has been experiencing new selling pressures, trading at $0.1802 following a greater than 5 percent drop over the day. The cryptocurrency is battling to keep important levels of resistance and support, and is causing concerns over the possibility of a sharp drop. If the selling pressure continues, DOGE could lose another decimal point and could fall just below the crucial $0.10 level.
