The first correction appears more serious than previously seen issues.
Shiba Inu has nearly retraced all of its gains from July. SHIB once broke through the critical $0.000015 mark, triggering bullish sentiment, but then fell back to $0.0000135, erasing weeks of upward momentum in just a few days. From the price chart, SHIB's breakout clearly failed.
SHIB rose in mid-July, with increasing trading volume, and reclaimed the 200-day moving average for the first time in months, seemingly ready to continue its upward trend. However, as selling pressure approached the resistance level of $0.0000155, momentum quickly reversed. This was followed by several days of selling, breaking through two key support levels of the 200-day and 50-day moving averages, which were expected to hold.
SHIB is currently on the verge of further declines, struggling to maintain its price above the 100-day moving average. The RSI indicator shows waning bullish power, having sharply fallen from overbought status and now hovering above neutral territory. On the red candlestick chart, trading volume has increased, indicating holders are actively selling and panic selling.
The next downside target is $0.0000125; these previous consolidation areas are now only weak safety nets. If SHIB fails to maintain support around $0.000013, it may drop to $0.0000113. The price surge in July was primarily caused by a surge in on-chain accumulation, whale activity, and speculative trading.
However, due to the lack of sustained trading volume or broader market support, the foundations of this rally are not solid. Analysis shows that SHIB remains very responsive to changes in market sentiment and does not possess structural support like large-cap assets.
The popularity of Dogecoin.
Dogecoin just plummeted 22%, shocking the market and catching everyone off guard. After a strong rebound that pushed this meme token above $0.28, investors expected it to consolidate or pull back slightly rather than completely reverse. However, the recent trend has reversed most of Dogecoin's recent gains, potentially suppressing the market's growing bullish momentum.
According to the chart, Dogecoin had previously been in a strong upward trend, easily breaking through important moving averages such as the 50, 100, and 200-day lines. With bullish sentiment rising, trading volume steadily increased. The rally ultimately ended with a sharp drop from below $0.20 to nearly $0.29, forcing Dogecoin into the RSI overbought territory (RSI exceeding 70), indicating that caution is necessary, although it would not trigger a major crash.
When the asset suddenly fell back to the $0.24 area, key support levels were wiped out. Accompanied by a sharp spike in trading volume, this confirmed that the sell-off was real, not just noise.
Besides undermining Dogecoin's short-term prospects, this price trend may generally suppress sentiment towards meme coins and other high beta assets. Given that Dogecoin led the speculative movements in altcoins during the recent rally, this impact is even more severe. If Dogecoin crashes at this time, overall market confidence may be weakened, especially for retail investors seeking quick momentum trades.
Ethereum seems untouchable.
Ethereum is performing well, breaking the market's general perception and maintaining its dominance even as many well-known altcoins have retreated. While other coins experience widespread profit-taking, ETH retains its dominance with minimal declines and strong structural support.
From a technical perspective, ETH is in a strong bullish momentum. The ETH price soared, reaching nearly $3,900 within days after breaking the months-long resistance level of $2,700. The trading volume for ETH is not speculative flash, but has remained steady throughout the rally, positively indicating sustained market interest in ETH.
Although the RSI indicator has slightly retreated from overbought levels, the asset remains firmly above important support lines, such as the psychologically significant $3,200 area and the 50-day moving average. The reaction to the market environment is one of the most obvious indicators of ETH's strength. Bitcoin, SHIB, Dogecoin, and other significant assets either declined or remained unchanged, but ETH continued to rise, setting new lows and resisting significant pullbacks.
The lack of aggressive selling pressure and institutional confidence are two key factors for long-term growth, and this behavior reflects both. Moreover, Ethereum is becoming more dominant than the larger altcoin market, suggesting that investors may shift funds to ETH during uncertain times.
If ETH can maintain above the $3,500-$3,600 range in the coming days, it is more likely to continue rising above $4,000. Ethereum has shown extraordinary resilience and may ultimately lead the market out of corrective lows rather than being dragged down by them.
