The wave of intense selling pressure on large-cap crypto assets continues as technical indicators suggest several tokens have entered oversold territory. While the primary trend for Shiba Inu, XRP, Dogecoin, and Bitcoin remains downward, recent steep declines may have laid the groundwork for short-lived relief rallies, according to analysts.
Shiba Inu and XRP struggle to regain footing
For Shiba Inu, the break below the ascending channel that had held since March has decisively weakened its recovery pattern on the daily chart. After this breakdown, SHIB slid as low as $0.0000045. Although buyers are attempting to intervene at this level, the response so far has been muted, and a convincing trend reversal is not yet in place.
The relative strength index (RSI) has dropped into the 27 to 30 range, highlighting that SHIB is in oversold territory. Previous dips into this region have sparked short-term rebounds, but with the price still below the 50, 100 and 200 day moving averages, any attempt at an upside move is likely to be seen as a reaction rather than a full-scale trend reversal for now.
Technical analysis suggests SHIB is in the process of forming a bottom rather than bouncing decisively. While oversold conditions may prompt a reaction, a sustained trend change appears unlikely without reclaiming key moving averages.
The situation for XRP deteriorated further after it broke down from the descending triangle pattern that had been forming since March. Losing the crucial support between $1.28 and $1.30 quickly pushed the price down to around $1.10. This breakdown is believed to have triggered a wave of stop-loss orders and forced liquidations.
Nonetheless, XRP is now attempting to establish a base in the $1.15 to $1.18 range following its latest low. The RSI here has also dipped into oversold territory. However, the major resistance levels remain significantly above: the 50 day average at $1.27, the 100 day at $1.35, and the 200 day at $1.40. As such, any upward move could encounter renewed selling pressure at these points.
| Asset | Key Support | First Resistance | Technical Outlook |
|---|---|---|---|
| SHIB | $0.0000045 | $0.0000053 | Oversold, but the main trend remains weak |
| XRP | $1.15 to $1.18 band | $1.27 | Searching for stability after losing key support |
Dogecoin eyes a rebound, but resistance looms
Dogecoin faces similar bearish pressure. The breakdown of the upwards trendline that had been in play since February accelerated selling, driving the price down to $0.085. At these levels, renewed buying interest has been observed.
The most promising note for DOGE is that its RSI has fallen below the 30 mark. Historically, sharp drops in momentum to these levels have been followed by strong bounce attempts. Nonetheless, with the 50 day average near $0.096 and the 100 day at $0.102, any attempted recovery may be capped by resistance in the near term.
Bitcoin attempts to stabilize after sharp selloff
The breakdown through Bitcoin’s trendline from March to May sparked one of this year’s most dramatic selloffs. The price tumbled from above $80,000 to nearly $60,000, triggering one of the largest liquidation waves of the year across the market.
Trading volume surged alongside the selloff, suggesting that forced liquidations and panic selling were the major drivers of the decline. The daily RSI plummeted to the low 20s, a rare occurrence that places Bitcoin firmly in oversold territory. In such conditions, the market often seeks at least a short-term relief rally.
The current outlook indicates Bitcoin is in the middle of a base-building process after a round of forced selling rather than at the dawn of a new sustained rally. Only a move back above major moving averages would signal a potential shift in direction.
For now, Bitcoin is still trading beneath its 50, 100 and 200 day moving averages. The $70,000 level is the first significant resistance, with the $74,000 to $75,000 range posing additional hurdles beyond that. The price’s attempt to steady between $62,000 and $63,000 may indicate the initial wave of selling pressure is starting to subside.
