The cryptocurrency market remains cautious, with some assets displaying resilience despite an overall negative trend. Ethereum is currently testing a midterm resistance level, while XRP is accumulating liquidity, potentially positioning itself for a price surge. In contrast, smaller tokens like Shiba Inu are encountering difficulties.
Since the market correction began in mid-October, Ethereum has demonstrated its strongest recovery momentum to date. The selling pressure has subsided, and the market has started to stabilize, now challenging a significant technical barrier at the 50-day EMA, which sits above the $3,350 mark. This level has acted as dynamic resistance for nearly two months, thwarting any attempts to break higher. However, the current market dynamics are markedly different.
The upward movement in Ethereum is supported by increased trading volume, the formation of higher lows, and a notable shift in market sentiment. The recent candle structure illustrates this momentum with consecutive strong-bodied green candles that are not being quickly sold off, marking a departure from previous trends. If this volume can be sustained, a bullish breakout is likely.
Should Ethereum successfully breach the 50 EMA, a rise to $3,500 could be on the horizon, potentially leading to a retest of levels between $3,700 and $3,800, where a significant breakdown previously initiated. This raises the question of whether Ethereum can reclaim the $4,000 mark as bullish sentiment solidifies.
If Ethereum finds itself rejected at the 50 EMA, a formation of a higher low around the $3,200-$3,250 range could maintain bullish momentum, delaying any breakout. An improvement in overall market liquidity could facilitate this secondary strategy. The less likely failure scenario would involve a pullback toward the $2,950 level, indicating insufficient market appetite for recovery.
Turning to XRP, the asset has been trapped within a clearly defined declining channel for nearly two months, characterized by lower highs and lower lows. However, the flattening of the lower boundary suggests a shift is imminent. The significant sell pressure that previously drove XRP into deeper lows is dissipating. The latest retest of the lower trendline has yielded a robust bounce, indicating that bearish momentum may be waning.
Currently, XRP is testing a convergence of technical barriers around the $2.15-$2.25 range, which includes the mid-channel descending trendline, as well as the 20 EMA and 50 EMA. A decisive breakout above the $2.28 level could attract sidelined buyers, indicating a reversal of the short-term trend.
Nevertheless, the lack of volume remains a significant concern. Without increased buying interest, XRP may continue to oscillate within the channel. If a breakout occurs, potential targets lie between $2.40 and $2.50, with further gains possible if the asset can overcome the entire channel structure.
In stark contrast, Shiba Inu continues to struggle. Recent rejections at the cluster of short-term moving averages confirm that buyer strength remains insufficient to reverse the prevailing downtrend. The asset briefly entered the $0.0000089-$0.0000091 territory but failed to maintain its position, leading to renewed selling pressure.
This resistance zone has proven to be a formidable barrier for nearly a month. Had it been breached, the market sentiment might have shifted towards a potential reversal. Instead, the bearish structure continues to be reinforced by lower highs, lower lows, and declining volume.
If Shiba Inu does not regain upward momentum promptly, the price may decline toward the $0.0000082-$0.0000080 range. A breakdown from this level could expose lower supports around $0.0000075, where buyers last demonstrated substantial conviction. Although Shiba Inu has faced challenges, there remains a possibility for recovery, contingent on meaningful buying activity returning to the market.
