Key

• Shiba Inu is anemic
• XRP’s bounce

A crucial question has been raised by Bitcoin’s recent market performance: Is the bull run already over, or is this just a mid-cycle pause? BTC has had difficulty maintaining upward momentum since hitting a new high earlier this summer, and recent price action indicates the rally may be losing steam. Because Bitcoin has failed to stay above the 50-day EMA, this is the main problem. In the past, this level has served as a solid basis for bullish continuation, however, in the present configuration Bitcoin tried to break through but failed.

The rejection at this moving average indicates a market where buying pressure is insufficient to sustain the subsequent leg up, and indicates a weakness in demand. Volume has been continuously dropping, adding to the bearish weight, and indicating that traders are not very confident. Every correction during prior strong bull phases was greeted by aggressive buybacks and increased volume inflows. Now, the lack of these indicators suggests hesitancy on the part of investors who are hesitant to commit to additional upside.

BTC/USDT Chart by TradingView

The next logical area of support for Bitcoin is around the 100 EMA, which is close to $111,000, if it is unable to regain the 50 EMA anytime soon. A test of that area might significantly strain sentiment, and possibly prolong the correction. The story would change from a healthy retracement to a more comprehensive trend reversal if it breaks below it.

The failed 50 EMA breakthrough, however, indicates that the road to higher highs might be postponed for the time being. The main resistance level that investors should keep a close eye on is $116,000. Talk of a sustained bull run seems premature in the absence of a clear move above it.

Shiba Inu is anemic

Shiba Inu’s recent trading sessions have seen nearly zero volatility, signaling the start of an extremely stagnant phase. Although symmetrical triangles are frequently used to precede breakouts, the current dynamics indicate that SHIB may be headed for a protracted period of sideways movement rather than an explosive rally.

According to the chart, SHIB has been steadily tightening between levels of support and convergent resistance. Every recovery attempt has been capped by the upper descending trendline, and the July ascending support has prevented the token from dropping further. This gives the appearance of a balanced market that lacks clear-cut momentum.

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It is a double-edged sword that volatility has dropped to almost zero. It lessens the possibility of unexpected malfunctions in the near future, on the one hand. On the contrary, it indicates that liquidity is dwindling and that traders are generally disinterested at current levels. The price may move indistinguishably for weeks as a result of this type of compression.

There has been a consistent drop in volume, and the token is still below its major moving averages. A breakout from this triangle might be more noise than signal if there isn’t a significant catalyst or a spike in demand. This means patience is key for investors.

The absence of volatility raises the possibility that stagnation rather than growth will characterize the foreseeable future, even though the symmetrical triangle can ultimately resolve in either direction. It is unlikely that the market will regain momentum in the near future unless SHIB recovers important levels above $0.0000135 and $0.0000141.

XRP’s bounce

After a sharp decline, XRP recently made one of the most unexpected recoveries of the summer, rising above the 50-day EMA. The asset appeared destined to decline further toward the 100-day EMA near $2.75, making this recovery nearly impossible. Rather, XRP abruptly reversed course, pushing back above short-term resistance and surprising the market. Because of how swiftly sentiment changed, the move has been called an unthinkable comeback.

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A few sessions ago, XRP was on the edge of diving below the 100 EMA as it struggled to stay above $2.80. Volume was declining, and momentum indicators were weak. Nevertheless, the market managed to muster enough strength to push the token back above the 50 EMA, giving investors hope for a possible continuation rally.

There is a catch to this rally though. Although the 50 EMA breakout appears promising, XRP never really broke through its 26 EMA support. It may not be as strong as it looks because the price tested it several times but was unable to close much below it. In summary, technical resilience rather than fresh demand is the foundation of XRP’s recovery. This raises doubts about the rally’s viability.

Should XRP fail to gain traction above $3.05 and retest the $3.20-$3.30 range, the move may not last as long as it seems. The market might retest the 100 EMA if it is unable to hold above the 50 EMA, at which point genuine support would need to be verified. For the time being, holders of XRP can find solace in this improbable recovery, but the warning indicators are still there: This recovery could be brief in the absence of volume and more solid fundamentals.

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