The crypto market is experiencing significant volatility as XRP, Bitcoin (BTC), and Shiba Inu (SHIB) are all facing strong selling pressure. All three assets are testing key support levels, raising concerns among investors about a deeper correction.
XRP Nears $2, Risk of Further Drop
After a slight recovery, XRP is now trading at $2.19, just a hair’s breadth away from the key $2.00 level. Despite some short-term signs of recovery, XRP’s overall price structure remains bearish.
The daily chart shows XRP remaining within a descending channel with increasingly lower highs and lows. The asset’s rejection at the 26 and 50 EMA resistance zones ($2.35 – $2.41) further solidifies the bearish bias. The key 200 EMA support is currently at $1.94, which if broken could lead to a sharp correction to the $1.75 zone.
XRP’s RSI is currently at 43, suggesting a recovery if there is an increase in trading volume. However, if XRP loses $2.20, selling pressure could increase and drag the price lower. Conversely, if there is strong buying pressure, XRP could head towards $2.30 in the near term.
Shiba Inu Loses All Its Surge in Profits
SHIB has just experienced a sharp drop of nearly 10%, officially wiping out all the gains from the recent rally. Currently, SHIB is trading around $0.00001273, just slightly above the important support level.
In the previous days, SHIB broke the $0.00001400 resistance level and generated a bullish signal when it crossed the 50 EMA. However, this momentum quickly disappeared, causing the price to fall back. The lack of sustainable trading volume is one of the main reasons why SHIB could not maintain its upward momentum.
Currently, SHIB is fluctuating between the $0.00001270 – $0.00001300 support level. If this zone is lost, the price could continue to decline to $0.00001200, which was an important accumulation zone in March. The RSI at 43.91 shows that selling pressure is still dominant, and the possibility of a short-term recovery is quite low.
Bitcoin Risks Losing $80,000
Bitcoin is trading at $83,358 and is facing selling pressure as it approaches the crucial $80,000 level. If it loses this level, BTC could enter a deeper correction.
Currently, BTC has lost support from the ascending trendline, while also being rejected at the 100-EMA near $88,000. This suggests that buyers are struggling to maintain bullish momentum.
Trading volume is also not strong enough to generate a significant recovery, with RSI hovering around 44.17 – a signal that the bearish momentum is still dominant. If BTC falls below $80,000, the next support levels will be at $76,000 and $72,000. In case the market continues to weaken, a deeper correction towards $68,000 – the area where the long-term 200-EMA is located – is also possible.
However, if the bulls can regain control and push the price back above $85,000, a recovery to $90,000 is still possible. However, given the current trend, the bearish scenario still seems to be the path of least resistance.
Conclusion
The crypto market is in a delicate phase as XRP, Bitcoin, and Shiba Inu are all facing important support zones. The weakening buying momentum coupled with negative sentiment could send prices further lower without strong intervention from the bulls. In the short term, investors need to keep a close eye on key support levels to assess whether this is an accumulation opportunity or a signal of a deeper correction.
