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The market has been beaten up dramatically. Unfortunately, a quick recovery will not come after such a devastating drop, even though $XRP, Bitcoin and Shiba Inu are extremely oversold at this point in time. But at least we are seeing the stabilization of selling pressure.
$XRP buying volume surges
$XRP has recently seen a sharp increase in buying activity, with market volume peaking close to $500 million, indicating a sudden return of liquidity and speculative interest.
The move occurs at a crucial technical juncture, as $XRP recently dropped to new local lows after declining steadily for weeks in a lower channel. The price action of $XRP over the last few sessions exhibited near-capitulation behavior, as aggressive sell-offs drove the asset below a number of significant support zones, but the latest trading sessions reveal a sudden surge of buyers entering the market just as the price reached extremely oversold territory.
Technically, $XRP is currently among the market's most oversold major assets. Momentum indicators, which are frequently connected to exhaustion in selling pressure, stay pinned close to oversold zones. As sellers lose steam and buyers start building positions, these circumstances typically come before brief recoveries or periods of consolidation.
Additionally, the abrupt increase in purchasing volume gives $XRP's market structure new momentum. When liquidity picks back up after significant drawdowns, it frequently fosters relief rallies, particularly when leveraged short positions start to close and push prices higher. If momentum persists, $XRP might try to recover adjacent resistance levels, which could temporarily stabilize price action.
But investors need to exercise caution. Strong volume spikes can occasionally be short-term speculative reactions rather than complete trend reversals, and the overall trend is still bearish. The price may find it difficult to maintain recovery gains in the absence of consistent follow-through buying.
This is when $XRP starts to be intriguing, mainly from a speculative standpoint. Short-term traders find deep oversold conditions and abrupt liquidity inflows to be appealing setups, but the price must still reclaim important technical zones for long-term confirmation.
Shiba Inu stays up
The price behavior of Shiba Inu has been surprisingly resilient despite the fact that the larger cryptocurrency market is still struggling due to ongoing selling pressure. $SHIB has avoided the kind of catastrophic breakdown that many large-cap coins have experienced, producing what appears to be relative bullish strength in the current environment as major assets decline toward multimonth lows and market sentiment wanes.
The ability of $SHIB to withstand market declines may initially indicate robust accumulation or rekindled investor interest; the reality, however, seems much less dramatic.
The current resilience is more closely related to liquidity conditions than it is to a sudden change in long-term sentiment or fundamentals. To put it plainly, Shiba Inu is trading in a market with less liquidity than well-known assets like Ethereum or Bitcoin.
When liquidity declines, fewer people are actively trading the asset, making price movements less susceptible to overall market movements. Because of this, $SHIB does not always replicate the forceful sell-offs observed in markets with greater liquidity, giving the appearance of strength.
After a protracted decline, recent price action indicates that $SHIB is stabilizing, with buyers entering around nearby support zones. Additionally, momentum indicators indicate that selling pressure has decreased, allowing for temporary consolidation or even slight rallies on the token. However, investors should not mistake relative stability for a bullish reversal that has been confirmed.
The overall trend is still weak, and if the market-wide risk-off attitude persists, $SHIB may eventually experience fresh pressure, when selling spreads more evenly among altcoins or liquidity returns.
Bitcoin enters sell-off
With price action currently testing levels that many traders did not anticipate seeing revisited this cycle, Bitcoin's most recent sell-off has forced the market into one of its most critical zones in recent history. Bitcoin is trying to stabilize close to current levels after losing important technical support in quick succession, but there is still a lot of uncertainty. There are reasons to believe that things could get better from here.
First, momentum indicators indicate that on higher time frames, Bitcoin is approaching deeply oversold territory, which has historically resulted in relief rallies. Additionally, volume spikes during the most recent decline point to capitulation-like behavior, in which longer-term buyers start to replace weaker hands as they exit positions.
However, it is impossible to overlook the bearish scenario. With the price regularly marking lower highs and trading below significant moving averages, the overall trend is still downward. Bitcoin could easily move toward the psychologically crucial $50,000 mark if selling pressure persists and sentiment on the macro or risk markets deteriorates.
To put it briefly, Bitcoin is at a turning point. Although there are still no obvious indications of sustained accumulation on the market, a technical bounce is still possible. There is still a chance of more declines until Bitcoin regains important resistance levels, and testing $50,000 is not completely out of the question.