Shiba Inu (SHIB) Lost Major Support, XRP Bullish Formation Invalidated, Dogecoin (DOGE) Reaches Key Support Level
2024-12-20
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With a recent 9% decline, Shiba Inu broke through the crucial 50 EMA level and made contact with the 100 EMA, another important support level. The asset is in a risky position going forward as a result of this loss of support, which emphasizes how flimsy SHIB's recent rally was. 
The once-dependable support level has turned into a resistance level, and the breakdown below the 50 EMA indicates a noticeable change in market sentiment. Without persistent buying pressure and better market conditions, the move is unlikely to be viewed as a complete comeback - even if SHIB is able to rise above it. On the positive side, the falling volume during this decline suggests that the bearish momentum may be waning. SHIBUSDT Chart by TradingView">
Although it is not a guarantee of a recovery, a tapering of selling pressure frequently indicates a possible reversal. Bullish candlestick formations or volume spikes close to the 100 EMA should be closely watched by traders to verify any reversal attempts. Around $0.00002045, which is in line with previous consolidation zones, and the 200 EMA could be the next target if SHIB is unable to hold the 100 EMA. 
A significant recovery from the current level, on the other hand, might force SHIB back toward $0.00002300 and ultimately test the 50 EMA as resistance. Right now, the main concern is whether Shiba Inu can level off around the 100 EMA and draw in enough buyers to stop the drop. Though there is some optimism due to the diminishing bearish volume, SHIB's recovery trajectory will largely rely on the mood of the market as a whole and the resurgence of confidence among its holders.
XRP regains power
The recent breakout of a descending price channel, which usually indicates a possible bullish move, was a significant technical breakthrough for XRP. The expected upward momentum, however, has not materialized, casting doubt on the formation's sustainability. XRP first looked poised for a robust rally after breaking above the descending channel, with projections of a push toward $3.00 or higher. 
However, the price has had difficulty gaining momentum and holding above the breakout point. The asset is currently trading around $2.30 with little buying interest, effectively invalidating the bullish setup due to this lack of momentum. The incapacity to profit from the breakout suggests that market sentiment for XRP is weaker than expected.
Since the breakout attempt, volume profiles indicate a decline in buyer participation, indicating that buyers have been unable to overcome selling pressure. This shows that traders are wary and might wait for more precise signals before joining the market. Although XRP technically stays above important support levels such as the 26 EMA, its inability to execute a breakout raises questions about its short-term direction. 
XRP may test lower levels like the $1.75 support zone if it drops below $2.10. A strong push above $2.50, with rising volume on the other hand, might rekindle bullish momentum and boost confidence. The significance of follow-through in price movements is currently highlighted by XRP's invalidated bullish setup.
Dogecoin hits key level
Since the beginning of the recent bull run, Dogecoin has been one of the best performers; in just one month its price increased by almost 200%. Now that the momentum has slowed, the asset is testing the 50 EMA support level and is at a crucial juncture. In technical analysis, the 50 EMA is a frequently monitored, an indicator that is frequently regarded as a crucial support level during uptrend corrections. 
This level has served as a turning point in previous price movements for DOGE, and whether the asset can continue on its upward trajectory depends on holding above it. According to the volume profile, trading volume has noticeably decreased during DOGE's recent decline. This shows that the selling pressure may not be as strong as it appears and that the current decline may be a normal correction rather than the beginning of a bearish reversal. 
To validate a robust rebound and fresh bullish momentum, there would need to be a notable spike in volume close to the 50 EMA. A possible recovery to $0.40 and higher may be in the cards if DOGE is able to maintain its position above the $0.35 level. However, the next crucial level to keep an eye on would be around $0.28, which corresponds with earlier price consolidation zones if the 50 EMA is unable to offer the required support.
For the time being, Dogecoin's short-term prospects will probably depend on its capacity to hold its position above the 50 EMA. To determine whether a deeper correction is underway or if DOGE is set for a rebound, investors should keep an eye out for any notable shifts in volume and market sentiment.