Despite the market’s endless attempts to recover, there is not much going on: XRP is on a good support level, Bitcoin is slightly dipping its toes below $90,000 and Shiba Inu is gaining momentum for a potential spike if bulls decide that it is worth it.
XRP is on edge
Right now, XRP is on the lower edge of its declining channel, which has served as a launchpad several times during this whole decline. The price has been working on this support for weeks, and the structure is getting clearer with each touch. The setup appears to be a classic trampoline zone, where oversold conditions and structural compression frequently result in explosive upward rebounds.
The market is now once again pushing against this critical line. This lower boundary is more than just a chart’s visual line. It is the point at which buyers intervene with sufficient force to halt momentum, even if only momentarily, after sellers have historically exhausted themselves.
This dynamic is supported by the RSI, which is showing waning bearish pressure while hovering close to oversold territory. During the most recent leg down, volume has also been tapering off, which usually indicates a slowdown rather than an extension of aggressive selling.
A sign that the market is getting ready for a change in direction is when candles begin to stabilize at a trend-support level, while momentum indicators flatten. The first logical target is located close to the channel midline, between $2.40 and $2.50, if XRP maintains this support and buyers eventually make their presence known.
The 50-day, 100-day and 200-day moving averages, which are currently stacked above the price, are located beyond that. It would take significant follow-through to break into that zone, but if it does, it would indicate that bulls are taking charge of recovery efforts rather than just responding to oversold dips.
Although it is currently a secondary possibility, a complete breakout from the descending channel would completely change the trend structure into a new bullish phase.
Bitcoin issues warnings
The chart has been flashing warnings for weeks, and the market structure has now played out exactly as it should when momentum collapses, so Bitcoin’s inability to hold the $90,000 level is not some mystery. Pretending otherwise will only cause investors to lose sight of the fact that the breakdown below $90,000 is merely a continuation of a larger structural unwind.
Velocity is the first important factor. There was no single panic wick during the sell-off, rather, it was a steady decline without any significant rallies. The slightly ascending micro-structure that momentarily appeared on the daily chart was rejected almost immediately, and each attempt at a bounce was weaker than the previous one. That is not bottom formation but classic continuation behavior.
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There is no justification for holding $90,000 when buyers are unable to even raise the price back to the closest EMA cluster. Liquidity verifies this. The recent leg down’s volume spikes are distribution rather than capitulation candles. There is no counterweight from spot demand, and sales are systematic and unrelenting.
Rising open interest during a downtrend is rarely bullish; instead, it indicates that traders are adding positions into weakness, usually shorts or over-leveraged longs being squeezed. Even derivatives metrics show stress. At a significant psychological level, neither situation promotes price stability.
The technical structure is just as harsh. Bitcoin is currently trading below each major moving average, with growing gaps, after losing the entire EMA stack weeks ago, one level at a time. The price is deep in bearish territory, according to momentum indicators, particularly the RSI, and there is no significant divergence to indicate reversal energy. The mark of $90,000 is merely another broken support rather than a foothold until those signals shift.
Shiba Inu is diving
As sentiment declined throughout the larger cryptocurrency market, Shiba Inu has been steadily declining over the past few weeks, slipping through successive support levels. However, the market has finally reached a point where price stabilization is becoming apparent, volatility is drying up and the customary post-capitulation silence is taking hold despite the protracted decline. That stage frequently comes before SHIB’s well-known abrupt, sharp upside movements.
Shiba Inu is currently hovering around the $0.0000085-$0.0000090 zone, which has historically attracted consolidations and trend pauses. One of the few price ranges where SHIB has consistently stabilized during prior downturns is this one. It is a level where sellers typically lose momentum and the market starts to reset, but it is not an impressive figure, a breakout or bullish on its own.
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The obvious slowdown in bearish volatility is currently the most significant indicator. Large amounts of speculative volume were washed out by the most recent wave of aggressive selling, but the pressure to continue is no longer present. RSI is flattening out rather than further declining, candlestick spreads are tightening and volume is decreasing rather than increasing. These are all well-known signs that a trend is getting old.
Periods such as these frequently result in disproportionately large upside movements on SHIB. The asset has a history of compression-then-expansion behavior, which is characterized by protracted periods of low-energy drifting interspersed with sharp spikes when investors regain confidence.
Early buyers typically intervene during a stabilization phase following a crash. The market has already priced in the worst, and the imbalance between buyers and sellers begins to neutralize, but not because fundamentals changed suddenly. Because SHIB is currently so oversold and compressed, even a slight change in sentiment could result in a significant bounce.