XRP Targets $1.50 as Bitcoin Signals Bearish Control

What to Know:

• Shiba Inu’s price action remains bearish, trapped in a long-term downtrend with little sign of reversal.
• XRP’s struggle to break above $2.00 has increased the likelihood of a retest of the $1.50 support level.
• Bitcoin’s inability to sustain rallies above key moving averages suggests sellers remain in control, requiring caution from investors.

While the broader digital asset space has enjoyed periods of optimism, several prominent assets including Shiba Inu, XRP, and Bitcoin are facing renewed bearish pressure. Chart structures suggest further downside may be in store before any sustained recoveries can materialize. For institutional investors, understanding these technical headwinds is crucial for managing risk and identifying potential entry points.

Shiba Inu’s Bearish Consolidation

Shiba Inu (SHIB) is currently consolidating within a small triangular pattern, a formation that typically resolves in the direction of the prevailing trend. Given the long-term downtrend characterized by lower highs and lower lows, this consolidation is more likely to lead to a continuation of the bearish momentum. The 20-day and 50-day moving averages are both sloping downward and positioned well above the current price, reinforcing the overhead resistance.

The lack of a strong accumulation phase, typically seen before a significant trend reversal, is concerning. Volume patterns indicate reactive buying during relief rallies rather than proactive accumulation, suggesting a lack of conviction among investors. Without a substantial increase in demand, SHIB will likely struggle to break free from its bearish cycle. This mirrors the fate of many altcoins during past bear markets, where initial hype faded and prices languished until a new catalyst emerged.

XRP’s Critical Support Test

XRP’s inability to sustain a break above the $2.00 level has put it on track for a potential retest of the $1.50 support zone. The asset is trading within a declining channel, with frequent rejections from key moving averages, signaling a lack of sustained bullish momentum. The failure to hold above $2.00, a key psychological and technical barrier, has emboldened sellers and weakened the overall market structure.

The 26-day and 50-day exponential moving averages (EMAs) are acting as a ceiling, preventing XRP from establishing a sustained uptrend. Each rejection from these moving averages reinforces the bearish sentiment, indicating insufficient demand to absorb the selling pressure. The current market structure is reminiscent of XRP’s price action in previous bear markets, where attempts to rally were consistently met with strong resistance, leading to prolonged periods of consolidation and decline. If the $1.50 support fails to hold, there is relatively thin liquidity beneath, potentially leading to a sharper move lower.

Bitcoin’s Struggle for Momentum

Bitcoin’s recent price action continues to favor sellers, with a pattern of lower highs and weak rebounds following failed attempts to sustain rallies above key moving averages. The short-term and medium-term moving averages are sloping downward and positioned above the current price, acting as dynamic resistance. This inability to hold above resistance discourages aggressive long positioning and reinforces bearish dominance.

While Bitcoin’s price action is consolidating along an upward support line, volume patterns suggest distribution rather than accumulation. In previous bear markets, similar patterns have often preceded further declines, as sellers gradually erode support levels. Until Bitcoin can reclaim key moving averages and establish higher highs, rallies should be treated as corrective rather than trend-changing. This cautious approach is warranted given the current macro environment, where rising interest rates and tighter monetary policy are weighing on risk assets.

Navigating Bearish Conditions

The current technical outlook for Shiba Inu, XRP, and Bitcoin suggests that caution is warranted. While short-term bounces are possible, the overall trend remains bearish, and investors should be prepared for potential further downside. Institutional investors should focus on managing risk, identifying key support and resistance levels, and monitoring volume patterns for signs of accumulation or distribution. Diversification and a disciplined approach to position sizing are also crucial for navigating these challenging market conditions.

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Source: Original article