The cryptocurrency market is currently navigating a period of significant challenge, marked by thin liquidity and a noticeable absence of institutional inflows from the U.S. This subdued environment is impacting even major altcoins, with Ethereum and XRP facing considerable downward pressure, while smaller cap assets like Dogecoin also contend with market weakness, signaling a broad shift in momentum.
Major Altcoins Struggle Amid Bearish Trends
Ethereum has demonstrably lost its upward momentum, with its price hovering around $3,230, struggling below critical resistance levels after failing to maintain a brief test of the $3,600-$3,800 range earlier in the month. Technical indicators paint a bearish picture: the 200-day Exponential Moving Average (EMA) now acts as resistance, a declining structure of lower highs is evident, and volume spikes on red candles confirm seller dominance. Despite the Relative Strength Index (RSI) nearing oversold territory, the sentiment remains cautious, with analysts warning that "cheap does not always equate to ready to recover." Without a significant influx of fresh demand, Ethereum faces the risk of further declines, potentially retesting $3,000, $2,800, or even $2,500. Similarly, XRP has erased months of progress, reverting to price levels last seen in late 2024 or early 2025. This downturn is largely attributed to the breakdown of a rising wedge formation, a classic bearish continuation pattern. The token's 200-day EMA has transitioned from strong support to firm resistance, while shorter-term moving averages consistently slope downwards, indicating persistent selling pressure. Beyond technicals, investor confidence has waned, market liquidity is reduced, and Ripple's network metrics, including transaction volume, have cooled. While XRP's RSI suggests it's approaching oversold conditions, a robust rebound is not immediately implied, with the token potentially retesting $2.00 or even $1.80 before any significant recovery.
Dogecoin Shows Cautious Optimism Despite Downtrend
Dogecoin presents a mixed outlook, consolidating around $0.161 after a notable correction from the $0.22 zone. While all major moving averages (50, 100, and 200-day EMAs) signal a clear downtrend, creating a strong resistance ceiling between $0.18 and $0.20, there are glimmers of cautious optimism. The meme coin's RSI is approaching oversold conditions, a situation that often precedes short-term relief rallies. Moreover, increased trading volume around the $0.16 mark suggests potential accumulation by traders anticipating a bounce. Should buying strength increase, the psychological $0.20 mark could become the next upside target. However, Dogecoin's ultimate recovery remains heavily contingent on the broader market sentiment and renewed liquidity flows into bellwether cryptocurrencies like Bitcoin and Ethereum.
