The recent downturn in Shiba Inu (SHIB) has sparked concern among investors, indicating a potential bearish trend in the coming weeks. The market is experiencing a surge in selling pressure, attributed to various factors, including high whale activity.
This volatility underscores a fragile market sentiment with local resistances impeding upward price movement. Immediate support for SHIB is identified at the 50-day Exponential Moving Average (EMA), historically serving as a dynamic bounce-back point. However, a breach below this level could further test support zones marked by previous lows.
Bitcoin’s correction and technical outlook
Bitcoin (BTC) has retraced from its recent high, failing to sustain above $51,000 and experiencing a notable correction. This decline follows the inability to breach the $52,000 threshold, indicating a cooldown from the market’s overheated state.
The current correction aligns with typical market behaviors following strong rallies, with local support near the 50-day EMA. However, a dip below this level may lead to further declines towards the $47,000 to $48,000 support region, followed by potential support near $43,000 to $44,000. Continued selling pressure could trigger an accelerated sell-off towards the $39,000 to $38,270 zones.
XRP’s technical indicators and bearish signals
XRP’s chart displays the crossing of the 100-day and 200-day EMAs, a scenario some may label a “death cross,” although it deviates from the classic definition. This event, indicative of bearish sentiment, is observed as XRP hovers above crucial support levels.
Maintaining ground above these levels is crucial for XRP to invalidate bearish signals and potentially ascend toward previous resistance levels. However, breaching these support levels could lead to a slide towards the next significant support zone.
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