Dogecoin

• Dogecoin’s recovery stalls
• XRP’s solid warning

The market is having trouble finding any significant support or bullish catalyst, so Shiba Inu (SHIB) is still slowly declining into uncertainty. Two crucial price levels, $0.00001167 and $0.00001061, are currently showing up as the last obstacles standing between a full recovery and a total collapse. Following several breakdowns from higher EMA zones, SHIB’s last-resort local support is currently the $0.00001167 level. 

It is essential to maintain above this threshold in order to avoid a steeper drop. But the warning signs are mounting as SHIB has recently dropped below this line and is having difficulty recovering it. The level of $0.00001061, the next critical zone, is practically the bulls’ final stronghold. 

SHIB/USDT Chart by TradingView

A decline below this threshold would eliminate any chance of a speedy recovery and might pave the way for SHIB’s price tag to be hit with another zero. The market structure indicates that SHIB will reach that point sooner than most people would like to acknowledge if it is unable to recover quickly. What makes this pessimistic outlook worse is the sharp decline in trading volume. In the past, low volume at support levels indicates that buyers are not very convinced. Every bounce attempt made by SHIB has been weaker, and the volume is drying up daily. 

False breakouts and volatility driven by whales flourish in this setting. Additionally, technical indicators validate the pressure. Even though the 50, 100 and 200 EMA levels have now become dynamic resistance, SHIB is still well below them. Around 35, the RSI is flattening, suggesting that there is still no buying momentum even in oversold conditions. SHIB must first regain and hold above $0.00001167 with conviction and a high volume if it wishes to change direction. If it is less, $0.00001061 will probably be tested; if it does not work, things will quickly become ugly. 

Dogecoin’s recovery stalls

The mini-golden cross, one of the first technical indicators for a trend reversal, is on the verge of in validation, which could jeopardize Dogecoin’s much-needed recovery. The bullish crossover between the 50 and 100 EMA, which frequently marks the beginning of an uptrend, seemed to be what DOGE was headed for on the daily chart. Unfortunately it appears that just before confirmation, the momentum stalled. The 50 EMA is curling sideways instead of continuing upward, unable to penetrate the 100 EMA. For bulls looking for long-term gains, this rejection is a warning sign.

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The price of Dogecoin is declining steadily and is unable to recover important support zones, which exacerbates the situation. The next crucial support level is hiding close to $0.16, and it is currently hovering just above $0.17. The asset may experience additional losses and revert to the bearish pattern that has dogged it since late March if this line is broken. A steep drop in trading volume adds to the bearish pressure.

Volume has experienced a sharp decline since the May peak, suggesting that buyers are not as convinced. Technical structure and robust participation are both necessary for a bullish reversal, and neither is present at the moment. A further warning is that the RSI is veering toward oversold territory without displaying any indications of bullish divergence. This implies that there is not much desire for accumulation, and rallies might not last long unless new catalysts appear. 

XRP’s solid warning

For both traders and investors, XRP’s recent price behavior is sending a strong warning: a retrace might be on the horizon. After a bullish breakout, the asset’s inability to sustain momentum is a clear warning sign that a fakeout has just taken place. XRP briefly jumped above important moving averages and made an attempt to breach the $2.27 resistance area, as can be seen on the chart. However, the price dropped back below the 50 and 100 EMA lines after that move swiftly lost momentum and was forcefully rejected.

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This kind of failed breakout frequently indicates a bull trap, which is precisely what we are seeing right now, especially when it is accompanied by a strong wick and rising volume. The crucial signal in this case is the fakeout itself. Critical resistance levels are frequently tested by markets to determine strength, and a breakout that is abruptly reversed indicates that there is not enough conviction behind the rally. 

This indicates that buyers of XRP were unprepared to maintain the momentum, which allowed bears to regain control. The RSI’s decline, which has fallen back below the 50 level and indicates waning bullish momentum, adds to the bearish pressure. Another indication that excitement is waning is the volume, which has begun to taper off after briefly peaking during the attempted breakout.

The next leg down could be severe if XRP is unable to maintain the 200 EMA or $2.09 support level. Now that level acts as the last line of defense before a more extensive retracement takes place. The recent price action may be one of the most significant fakeouts XRP has witnessed this year, setting the stage for a more significant correction unless bulls intervene with significant volume and swiftly switch sentiment.

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