The price movement of XRP is warning traders not to ignore it. The asset is perilously close to a mini death cross formation, which is a bearish precursor in which a shorter-term moving average threatens to fall below a longer-term one. The 50-day EMA and the 26-day exponential moving average are convergent on the daily chart close to the $2.25-$2.30 range.
These moving averages could formally cross, solidifying the death cross signal, if price action keeps moving sideways or if there is fresh selling pressure. This configuration has enough technical weight to shake sentiment even though it is not as important as the traditional 50/200-day crossover — particularly in a market that already lacks strong conviction.
The overall state of the market is not favorable to XRP. The lackluster volume indicates that neither bulls nor bears are prepared to make a full commitment. Due to this dynamic, XRP is susceptible to abrupt fluctuations in either direction — exactly the kind of situation in which a death cross can trigger inflated volatility.
Technically the path toward $2.00 becomes more likely in the near future if XRP is unable to regain higher ground and maintain its position above the convergent EMAs. Regaining the $2.35-$2.40 range with increasing volume, on the other hand, would block this impending bearish signal and possibly draw in sidelined buyers who are awaiting a clear breakout.
However, readings of the relative strength index (RSI) that are close to 53 indicate that momentum is balanced but brittle. The lack of a definite acceleration or exhaustion highlights how uncertain this market has become.
Shiba Inu's rejection
Shiba Inu is currently stuck in a concerning price pattern that goes against what is typically expected of an asset making an effort to recover. Generally, even a small relief rally that lasts this long under pressure clears the 26-day EMA, a fundamental technical milestone that indicates early-stage momentum.
However, SHIB has fallen short of even that, exposing a stark weakness in its existing market structure. Shiba Inu is still stuck below all of the major moving averages on the chart, including the 26 EMA, and is presently circling the $0.00001274 zone. Several attempts to break through this level have been quickly rejected, and despite increasing volume, the most recent daily candle closed below it once more. This is not a good indication.
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It typically indicates that sellers are taking in every bid that enters the market when volume rises, but price action is unable to overcome resistance. The conclusion is obvious: SHIB continues to have a sizable supply overhang. The 50 and 100 EMAs are important dynamic resistance levels that delineate the line between bearish continuation and any possibility of a recovery, and the price is still wedged below them.
The 26 EMA typically becomes the first barrier to drop in a consolidating altcoin as traders front-run a wider trend reversal. In SHIB's case, however, the opposite is taking place: the asset is finding it difficult to even challenge higher zones around $0.00001321 or $0.00001472, and the 26 EMA is functioning as a concrete ceiling. Indicators of momentum validate this vulnerability.
There is no indication of a bullish divergence as the RSI remains below 50. A clear warning sign is the absence of consistent upward closes even in the presence of sporadic volume spikes. Expectations for a significant rally are at best speculative unless SHIB is able to close above its short-term moving averages.
Bitcoin breaks in
The technical breakout that traders have been awaiting for weeks has finally been delivered by Bitcoin. With BTC closing above the crucial $109,000 resistance, the descending trendline that has been limiting price action since early June has been decisively broken. Based solely on the chart, this breakout represents a fundamental change in structure and a resounding rejection of the lower highs that characterized the final leg of consolidation.
Nevertheless, even though this move seems promising, nothing changes. The obvious lack of conviction behind the breakout itself is one of the most obvious flaws. What should have been a spur for fresh speculative inflows has instead resulted in a tepid volume expansion above average on the spot market. This suggests that rather than a surge of eager buyers prepared to propel Bitcoin into the next leg higher, the breakout is being driven more by the mechanical exhaustion of sellers.
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In other words, this is more of a cautious tiptoeing into unknown territory than an explosive ignition. Investors seem content to watch from the sidelines to see if Bitcoin can sustain these levels or if — as has happened several times in the past year — this push will turn into another fakeout. As long as Bitcoin maintains its position above the trendline and holds the short-term moving averages, the 50-day EMA close to $106,500 and the 26-day EMA closer to $106,400, the breakout is still technically valid.
More sidelined capital is likely to return if the price can consolidate above these reference points. For the time being, however, this action is merely a milestone. It emphasizes that sentiment is still hesitant. Bitcoin will remain susceptible to a retracement until volume shows a clear expansion and buyers demonstrate a willingness to commit actual capital to defend this range.
Although the breakout has been secured, wider market participation has not yet verified it. Investors would be well advised to keep an eye out for either a spike in purchases or a failed retest, which could push Bitcoin back into the range it has been fighting so hard to break out of.
