The market has indeed seen a pullback, as several key resistance levels have proven more difficult to break through than initially anticipated.
XRP came under renewed pressure after failing to break through the $1.50 level, reinforcing the larger bearish pattern that has formed over the past few months.
XRP has higher expectations.
The asset recently attempted a rebound, testing higher resistance levels, but the rally stalled before gaining any significant momentum. One of the biggest setbacks occurred when XRP tried to approach the $2 mark.
Although the rebound was brief, buying pressure drove prices higher, and the market briefly showed strong momentum. However, strong selling pressure halted this rise, and XRP subsequently returned to its expected downward trajectory. This rapid decline indicates that sellers remain in control and highlights the continued lack of demand at higher levels.
Currently, XRP is struggling to maintain support in the $1.45 to $1.50 range. Although there have been signs of a small short-term rebound from recent lows, the recovery remains fragile and weak.
Moving averages suppress prices
Key moving averages, such as the 50-day and 100-day moving averages, are currently trending downwards and form strong dynamic resistance levels, but remain below the price.
From a technical perspective, a sustained downtrend is characterized by prices constantly hitting new lows, due to repeated failures to rebound to higher levels. XRP failed to maintain its upward momentum because each attempt to rebound was met with new selling pressure.
The resistance level around $2 marks a psychological and technical breakout zone, making it particularly significant. This failed breakout not only negated previous attempts to rally but also exacerbated market pessimism.
The situation remains challenging for investors. With few clear signs of a reversal, XRP's price is trapped between strong resistance above and weak support between $1.40 and $1.50. Unless XRP can regain its footing above the important moving averages and break through key resistance levels, the current market structure suggests continued instability.
The Shiba Inu struggled to climb up.
After hitting a local low, SHIB attempted a slight rebound over the past few weeks. The asset briefly formed a short-term upward pattern and rose, giving traders hope of a possible reversal. However, once the price encountered resistance, failing even to break through the most basic technical barriers, the upward momentum quickly faded.
The main problem is that the SHIB has failed to hold its short-term moving averages, particularly the 50-day exponential moving average (EMA), which remains a strong dynamic resistance level. Whenever the price approaches this level, sellers intervene and prevent further price increases. This continued failure suggests that bullish momentum is insufficient to combat the broader downtrend.
Structurally, the SHIBOR remains in a pattern of constantly making new highs and lows, a traditionally bearish formation. If this pattern doesn't break, any upward movement will be corrective rather than driving. The failure to break through adjacent resistance levels further confirms this prediction.
The $0.00001 price level is significantly higher than the current price range and is generally considered a significant psychological milestone for the SHIB. Reaching this level requires not only a strong breakout above multiple resistance levels but also a sustained shift in market sentiment. Currently, neither of these conditions is met.
Furthermore, the SHIB has consistently traded below all major moving averages, including the declining 100-day and 200-day moving averages. This trend suggests that the stock faces persistent bearish pressure across multiple timeframes.
In fact, if the short-term resistance level fails to be broken, the likelihood of a price rebound to $0.00001 in the short term is greatly reduced. This effectively eliminates the possibility of such a price movement under the current market conditions, although the possibility is not entirely ruled out in the long term.
Dogecoin bottom
Dogecoin remains under pressure, and recent price action increasingly suggests that a significant rebound is unlikely at this time. Despite a slight consolidation recently, Dogecoin remains in a downtrend and shows little sign of weakening in the short term.
Over the past few months, Dogecoin's price has been steadily declining, forming lower highs and lower lows, a typical characteristic of a bear market. Recently, Dogecoin's price has been hovering between $0.09 and $0.10, without showing significant upward momentum. Every attempt to push the price higher has been quickly thwarted, further confirming the view that buying power is insufficient to reverse the current trend.
From a technical perspective, Dogecoin is currently trading below its 50-day, 100-day, and 200-day exponential moving averages, as well as several other important moving averages. All of these indicators are trending downwards, forming dynamic resistance and suggesting that the overall market structure remains weak. If these levels cannot be re-established, any short-term rally is unlikely to develop into a long-term recovery.
It now appears that the likelihood of a price reversal is decreasing. The market lacks the trading volume and technical structure needed to sustain an upward breakout. Therefore, the focus shifts to identifying where asset prices might stabilize, and the charts suggest one such level is likely.
Clearly, the key price reset point is at $0.08. This area has historically acted as a local bottom, where Dogecoin found short-term support and attempted a weak rebound. If the existing structure continues to deteriorate, it's likely to retest this level.
From a market perspective, the price drop to $0.08 indicates that the market has entered a reset phase, where assets will seek a more solid bottom rather than a collapse. Such a reset process is typically required before any significant recovery.
Investors' expectations should be reasonable. Dogecoin is currently in a consolidation phase within a larger downtrend, rather than a recovery phase. The most likely outcome is further price weakness, or a pullback to the $0.08 support area, until the asset demonstrates the ability to break through key resistance levels and reverse its downward trend.
