After weeks of intense downward pressure, the market is beginning to show first signs of stabilization and the current structure points to the possibility of a proper market recovery. Although the overall trend is bearish, assets like XRP, BTC, and SHIB have chances to gain even better positions ahead of the new trading week.
More stable, but less interesting.
Currently, XRP is moving sideways rather than continuing its sharp decline after rallying from recent lows. Following a severe sell-off, price action is trying to hold a support zone rather than making new, more aggressive lows. The double bottom story is created with the second touch of this area along with a slight bounce. The market as a whole may become more confident as traders look for signs that risk is returning, as it indicates that sellers are having a difficult time driving the asset much lower.
Although the recovery is still in its early stages, the pattern itself sets a positive tone. When accompanied by momentum improvement and volume stabilization, which are gradually emerging, double bottoms tend to work best. The structure may move from a simple consolidation phase to a more significant recovery phase if XRP maintains its defense of this base, which could also increase sentiment among altcoins.
Crypto market review:
There are some prices that stand out and should not be ignored at this time. The first crucial zone, which sits around $1.40, serves as instant support and determines whether the double bottom remains true. The bullish case would quickly deteriorate if this level were lost.
The first area of resistance above the current price where short-term sellers could reappear is between $1.52 and $1.55. Getting it back would support the recovery argument. The major moving averages converge between $1.75 and $1.80, which is a higher target to watch and a crucial confirmation zone for any major trend reversal. Right now, XRP is still in the decision-making stage.
Bitcoin is compressed
Bitcoin price action is compressed in a tight range at this crucial technical moment, which may determine the course of the asset over the coming weeks. Following a dramatic drop from higher levels, Bitcoin has entered a consolidation phase characterized by a narrowing triangle pattern.
This is a simple problem: the price is right on the edge of that formation, and the next action could determine whether the market stabilizes or enters another downtrend. A notable loss of momentum is evident in the most recent structure. Due to several failed recovery attempts, Bitcoin is currently trading below significant moving averages, maintaining the overall downward trend.
However, the price has started to rise, making higher lows against a comparatively flat resistance line instead of collapsing immediately. This results in a pressure zone where sellers continue to rely on the market from above while buyers try to defend short-term support.
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They represent uncertainty, but ultimately that tension is released with a breakup or breakup. The likelihood of support giving way is increased by the current frequent tests of Bitcoin’s lower bound. As stop-losses and marginalized sellers re-enter the market, a clear drop below the triangle would likely allow the broader bearish move to continue.
Alternatively, this range is a real-time decision point rather than just another pause. The main area that traders are keeping an eye on is the current consolidation zone, which is near the mid-$60,000 range. To maintain the short-term stabilization narrative it is necessary to stay above it.
However, losing this level could accelerate the decline towards the next structural support, which is near the low $60,000 area, where buyers intervened earlier during the initial sell-off. Right now, Bitcoin is still in a state of balance between exhaustion and continuation. To regain control and face areas of higher resistance, bulls need a clear break above the triangle resistance, while bears only need a significant push below support to validate the next descending wave.
The market is essentially at the limit, and the outcome of this range will likely influence the sentiment that permeates the entire cryptocurrency market in the near future.
It’s not easy for Shiba Inu
With price action confined between an ascending support trendline and the 26-day EMA ceiling, Shiba Inu is currently trading in a tight and uncomfortable technical position. Bullish and bearish pressure are colliding in a clear compression zone created by this setup, effectively trapping the asset while traders wait for guidance.
Short-term support from the ascending trendline has prevented SHIB from completely collapsing following the recent volatility. Every time the price approaches this rising line, buyers step in, indicating that some market players are trying to establish a local base. However, recoveries have frequently stalled near the 26 EMA, which still serves as dynamic resistance.
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Each rejection of this moving average maintains the bearish momentum and strengthens the selling pressure. This is the reason why the current situation is precarious. Price usually achieves a decisive breakout when it is caught between a declining moving average and rising support.
A breakout could generate additional downward pressure if SHIB fails to hold the trendline, which could push the asset towards lower support zones and exacerbate the already cautious sentiment. Technically speaking, the market would consider this move as confirmation that the sellers are still in charge. However, many investors are closely monitoring a clear bullish scenario.
Buyers have finally absorbed the selling pressure if there is a clear break above the 26 EMA. Such a move has the potential to quickly change momentum, causing short-term traders to adjust their positions and pave the way for a broader rally. The structure is now so compressed that even a slight bullish momentum could lead to a significant rise.
