The cryptocurrency market is currently in a critical cooling-off period following a recent crash that abruptly halted its initial recovery phase. While the overall market sentiment remains cautious and liquidity constraints persist, a notable divergence is emerging between Bitcoin's deepening bearish outlook and the tentative signs of stabilization and potential recovery in select altcoins like XRP and Shiba Inu.
Bitcoin's Deepening Bearish Outlook
Bitcoin's bullish narrative appears to have completely faded, replaced by persistent bearish signals across technical and momentum indicators. Trading around $107,900, BTC remains significantly below its 50-, 100-, and 200-day Exponential Moving Averages (EMAs), all of which are now sloping downwards, signaling a midterm trend reversal and structural weakness. The inability to reclaim the 200-day EMA, coupled with an RSI hovering near oversold territory (38) and increasing sell pressure during brief rallies, suggests that Bitcoin is likely entering a prolonged bearish phase. Macroeconomic conditions, including tightening liquidity and fragile investor confidence, further compound the downward pressure. The $100,000 mark, once considered a target, now looms as a potential support level that could be tested, as the path of least resistance for Bitcoin continues to be downwards unless a strong and decisive recovery above $114,000 occurs.
Altcoins Show Early Signs of Stabilization
In a contrasting development, both XRP and Shiba Inu (SHIB) are exhibiting early indications of a potential short-term rebound following weeks of intense selling pressure. XRP's decline has suddenly halted, with the asset stabilizing in the $2.30-$2.40 range. Its RSI, currently at 37, signals an oversold condition, and a sharp rebound after briefly dipping below its 200-day moving average suggests renewed demand at lower price points, possibly fueled by significant buyer intervention. A successful breakout above the $2.60-$2.65 resistance zone could confirm a short-term bullish shift. Similarly, Shiba Inu is attempting to reclaim the crucial $0.000010 psychological threshold. The meme coin has found stabilization above $0.0000095, a former high-volume support area, with increasing trading volume and a flattening RSI between 37 and 39 hinting at accumulation. Factors like rekindled whale activity, improved market sentiment, and upcoming ecosystem updates are contributing to this recovery. For both XRP and SHIB, these early signals of waning selling momentum and subtle buyer resurgence offer glimmers of hope for multi-day rebounds, provided current support levels are maintained.
