XRP and SHIB Get Hit Hard as Bitcoin Stays Resilient

XRP's price plummeted by 43%, wiping out weeks worth of gains. Just the most recent daily candle has created a vicious knife that is 30% downward

XRP's price dropped sharply on Friday, erasing several weeks of gains. The latest daily candle alone has formed a brutal 30% knife to the downside, signaling extreme volatility and panic selling. As XRP跌至关键支撑位，多头鲸鱼会买入下跌趋势吗？还是说这波跌势的开始更加猛烈？

From a high of $3.40, XRP has now lost critical support levels as it fell to $2.00. The latest candle confirmed a shift in momentum to the bearish side, slicing through the 50 EMA. If the 100 EMA fails to act as the next strong support, XRP may be testing the 200 EMA, which currently sits at $1.60.

XRP is now vulnerable to the downside. A strong bounce from the $2.15 zone could trigger a relief rally, pushing the price back up towards $2.60 or even $2.85 if buyers regain control. But if the support cracks, the losses could accelerate, dropping the price towards $1.160 or lower.

Historically, large investors have tended to accumulate during steep price drops. If there's a spike in whale activity as XRP drops between $2.00 and $2.15, it could signal a bottom formation. But if there isn't any significant buying pressure, especially with the overall state of the market still being bearish, XRP could continue falling.

Shiba Inu faces critical breakdown, another zero about to dropSHIB risks dropping another leg down to the lower-$0.00001 zone, which would spell doom for the market sentiment around SHIB as it loses a critical level of support, leaving traders on edge as the massive sell-off continues to hit SHIB hard, dropping the meme coin by over 50% in recent weeks.

The breakdown accelerated after it lost critical support levels, including the 50 EMA, 100 EMA, and 200 EMA, leaving everyone eyeing the $0.00001 level as it becomes increasingly difficult for the bulls to regain control with the bearish momentum building up. If SHIB drops below this psychological level, it would further erode investor sentiment, adding another zero to its price.

Considering how meme coins like SHIB have historically relied heavily on psychological price levels and community hype, a move into the five-zeros could spark even more selling pressure. If it breaks below $0.00001, the bearish scenario sees SHIB dropping sharply towards $0.000008, a level that hasn't been touched since mid-2023.

Such a deep drop would make recovery even more challenging as most of the bullish momentum from earlier in the year would be lost.

Bullish scenario: If buyers step in close to $0.00001, SHIB may attempt a slight relief bounce back towards $0.000017, where it will face its next resistance. However, any recovery could be short-lived if demand is weak.

Bitcoin remains resilient despite mass liquidationsBitcoin held up remarkably well as a wave of liquidations swept through the cryptocurrency market, remaining above $95,000 and showing resilience even as many altcoins suffered double-digit losses. The latest market crash saw over $2.24 billion lost by over-leveraged traders.

Altcoins suffered the most as several assets dropped by more than 40% in a matter of days. Bitcoin, however, managed to avoid a catastrophic decline and trades above critical support levels despite hundreds of millions in liquidations. Bitcoin's price action suggests that institutional investors and whales are still in the game, creating strong demand around $92,000 to $95,000 and preventing a more significant breakdown.

When buyers quickly stepped in as it briefly dropped below $95,000, Bitcoin's structure was largely preserved. The 100 EMA, a critical technical support level, still trades above the price of Bitcoin. If the price manages to hold above $92,000, we could see Bitcoin gaining momentum and attempting to retest $100,000 in the coming days.

However, the next critical support is seen around $83,000, where the 200 EMA is currently located, should the selling pressure increase and Bitcoin drops below the $92,000 mark. A decline below that could signal a more severe correction, potentially dropping Bitcoin down to $75,000. Despite the sell-off, Bitcoin's relative strength shows that the long-term uptrend is still in place. In contrast to many other altcoins struggling to recover, Bitcoin continues to lead the way, cementing itself as the safest cryptocurrency bet during turbulent times.