XRP has shown signs of a classic dead cat bounce, a bearish pattern that’s raising red flags for traders as crypto markets face increasing downward pressure.

What the ‘Dead Cat Bounce’ Means for XRP

The recent rebound in XRP’s price initially gave some investors hope for a sustained rally. However, technical indicators now suggest the bounce was short-lived. A dead cat bounce refers to a temporary recovery in the value of a declining asset, followed by a continuation of the downtrend. This pattern is often mistaken for a market reversal.

XRP surged briefly last week, but momentum faded as resistance levels failed to hold. This false revival has now turned into a warning sign, with selling pressure returning across major exchanges. Market participants should be cautious, as the broader trend remains bearish unless strong volume confirms a new upward breakout.

Bitcoin’s Bearish Formation: The ‘Three Black Crows’ Pattern

Meanwhile, Bitcoin’s price chart has printed a “Three Black Crows” candlestick pattern, often associated with prolonged downward trends. This formation consists of three consecutive long-bodied red candles, each closing lower than the previous day, signaling strong bearish sentiment and possible panic selling.

Bitcoin losing ground could weigh heavily on the wider crypto market, including altcoins like XRP. Historically, such patterns have preceded multi-week corrections, especially when they form near key resistance zones and lack accompanying bullish volume.

Shiba Inu (SHIB): A Final Push or Exit?

Shiba Inu (SHIB), another attention-grabbing asset, appears to be approaching a critical juncture. Analysts indicate that SHIB is on its “last chance” to defend vital support levels before potentially slipping into another leg of decline. The meme coin has experienced low trading activity and waning interest over the last several sessions.

If SHIB fails to hold its current levels, the next major support appears significantly lower, opening the door to rapid losses. Investors watching SHIB should closely track price behavior in the short term for signs of recovery or breakdown.

Market Sentiment Turns Risk-Off

The combination of XRP’s bounce losing steam, Bitcoin’s bearish candlestick patterns, and SHIB’s fragile technical posture points to a broader market that’s turning risk-averse. Investors appear increasingly cautious amid macroeconomic uncertainty and tightening crypto regulations.

As these bearish signals mount, crypto traders may need to adjust their strategies. Many are opting to reduce risk exposure or wait for confirmation from higher-volume breakouts before reentering positions.

Technical indicators show bearish signals across major cryptocurrencies, raising caution among investors.

Related: XRP Price: $12M Max Pain for Bears

For the market to regain bullish momentum, analysts suggest that key resistance levels must be broken with accompanying volume spikes. Until then, the risk of further declines remains elevated.