What to Know:
- Bitcoin’s recent recovery lacks strength due to declining trading volumes, suggesting a potential dead cat bounce rather than a sustained uptrend.
- XRP faces increasing bearish pressure, with a death cross formation and weakening price structure hinting at a possible decline toward $1.
- Shiba Inu’s trading volume has collapsed, leading to market stagnation and potential further declines, exacerbated by the presence of bearish technical indicators.
The cryptocurrency market is showing signs of weakness, with Bitcoin’s recent recovery failing to inspire confidence due to low trading volumes. This lackluster performance extends to altcoins like XRP and Shiba Inu, which are also exhibiting concerning trends. Investors should remain cautious as the market navigates these uncertain waters.
The technical picture for XRP continues to deteriorate, increasing the likelihood of a drop to $1 in the medium term. A recent death cross formation, where the 50-day moving average fell below the 200-day moving average, has validated concerns about the end of the bullish cycle. This bearish signal is compounded by multiple rejections near $2.60, reinforcing resistance levels.
Shiba Inu’s market performance is equally troubling, with trading volume collapsing despite holding above the $0.0000097 mark. This indicates waning interest in the meme coin, historically preceding extended periods of consolidation or further declines. The daily chart shows minimal movement, with prices stuck in a narrow range amid multi-month lows in trading volume.
Bitcoin’s attempts to bounce off the $100,000 support level appear weak, forming a shallow upward pattern indicative of exhaustion rather than accumulation. Declining trading activity accompanies each small green candle, contrasting with the rising volume expected in a healthy bull market. This discrepancy suggests a lack of participation from institutional buyers and long-term holders.
Source: Original article
