Critical Shiba Inu (SHIB) Breakdown Raises Questions, Dogecoin (DOGE) on Fundamental Support, Bitcoin (BTC) Recovery Isn't So Unrealistic
2025-01-28
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Shiba Inu is experiencing one of its biggest declines in recent history due to a dramatic sell-off. The token's technical structure has shattered as it has fallen below the pivotal 200-day EMA. In keeping with the pessimistic outlook, SHIB has seen a dramatic drop in investor confidence and market activity, losing almost 60% of its trading volume. Large holders, also known as whales, are making matters worse by offloading their positions in large quantities. 
It is practically impossible for SHIB to find solid support at current levels due to the tremendous selling pressure caused by this massive liquidation trend. Although their abrupt departure frequently portends trouble ahead, whales are generally regarded as market stabilizers. SHIB is currently trading well below the crucial $0.00002 support level at about $0.00001785.SHIBUSDT Chart by TradingView">
Since the 200-day EMA was breached, the token is now vulnerable to even more severe corrections. SHIB might test the next significant support levels at $0.000015 if selling pressure persists, and in the worst case, it might fall as low as $0.000011. The upside is that a reversal is not completely out of the question. Should SHIB be able to recover the $0.00002 level with a surge in volume, it may draw in speculative purchases and level off. This would necessitate substantial market participation, though, which is unlikely given the current situation. 
The short-term prospects for SHIB are still bleak overall. A bearish picture is painted by the combination of technical breakdowns decreasing volume and whale activity. As the token traverses these perilous waters, investors must exercise extreme caution. SHIB might keep declining in the near future if there is no change in sentiment or notable market catalysts. 
Dogecoin drops sharply
As Dogecoin continues its sharp decline, it is approaching a turning point. The 100-day EMA, a crucial support level that has traditionally served as an investor safety net, has already seen a decline in value. There are significant doubts regarding DOGE's capacity to sustain its upward trajectory in the near future in light of this breach. Dogecoin is currently trading between $0.32 and $0.25, which is dangerously close to its next important support level.
An entire reversal of its recent bullish rally would occur if it broke below this level, which would probably lead to a rush of panic-selling. After making such a move, DOGE might reverse its previous gains and go into a protracted bear market. DOGE's problems are being made worse by the absence of purchasing power. Due to market uncertainty, volume has noticeably decreased, suggesting that traders are pulling back. 
Additionally declining is the Relative Strength Index (RSI), which indicates that momentum is firmly on the bearish side. DOGE may be able to avoid a more significant correction if it can recover its position above the 100-day EMA in the upcoming days. Given the general mood of the market, this would necessitate a large surge in purchasing activity, which does not appear likely at the moment.
A rebound at this level, though, might give bulls some hope and pave the way for a recovery rally toward $0.35 and higher. Investors should now keep a careful eye on the $0.25 support level. Not only would a breakdown below this level mark the end of DOGE's bullish phase, but it might also pave the way for additional declines, possibly reaching as low as $0.20. 
Bitcoin loses $100,000
With Bitcoin's recent decline below $100,000, investors are becoming concerned. Nevertheless, a closer examination of its technical indicators suggests that a recovery may not be far off. The 50-day EMA is a crucial support level that has historically served as a launching pad for price rallies, and it is currently where Bitcoin is trading. When Bitcoin remains above the 50 EMA, which is frequently seen as a turning point for short-term trends, bulls are still in control. 
Given its current positioning, Bitcoin may return above $100,000 in the days ahead if buying pressure picks up. Additionally, there are currently no indications of a significant breakdown in the asset's overall structure. At the moment, volume trends are inconsistent. The selling pressure has not been strong enough to push Bitcoin below other important support levels like $95,000 despite a recent decline in buying interest.
The market may be consolidating and getting ready for its next big move, as indicated by the balance between buyers and sellers. Regaining $100,000 and maintaining momentum above this psychological barrier would be necessary for Bitcoin to confirm a recovery. Restoring confidence and possibly starting another rally toward $105,000 or higher would be possible if this level were broken. On the other hand, Bitcoin might fall further if it is unable to hold the 50 EMA, with $91,000 serving as the next crucial support.