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The market is seeing a glimpse of hope as XRP, Bitcoin and even Shiba Inu are showing the potential for a quick recovery that seemed impossible only a few days ago. However, there is a good chance that the recovery we are seeing now will be a very short-lived one.
XRP's great recovery
Over the past 24 hours, XRP has had one of its best daily performances in weeks thanks to an amazing comeback. Investors, who had all but written off the recent bearish cycle, were once again optimistic as the asset surged by more than 7%, regaining important support levels. As of press time, XRP is trading at about $2.54, indicating a resurgence of interest in purchases.
The most noteworthy aspect of this move is not only the price movement but also the enormous increase in trading volume —more than 110 million XRP were exchanged in a single day. This increase in volume highlights an unexpected surge in market activity, indicating that both large holders and short-term traders are returning to the market following weeks of reluctance.
Additionally, the technical setup has improved. The short-term declining resistance line that frequently precedes longer-lasting rallies has been broken by XRP. The 200-day moving average, which is presently close to $2.65, is the next crucial obstacle that will decide whether this rebound can develop into a longer-term recovery.
Recent green candles indicate widening body sizes, which is another indication of the conviction behind this move. The RSI has risen above 53, suggesting that buyers are becoming stronger. A general recovery on the cryptocurrency market — where risk appetite seems to be returning following a turbulent start to November — also coincides with the sharp rebound. However, there are challenges in the way.
The overall trend is not yet bullish since XRP is still below both its 100-day and 200-day moving averages. The 110 million XRP volume spike today, however, might indicate a change in sentiment – the kind of engagement that frequently ignites fresh midterm rallies. For the time being, it is obvious that the bulls are back in the lead.
Shiba Inu woke up
Although Shiba Inu's price performance seems to be stabilizing, the underlying metrics — especially its burn rate, which has essentially dropped to levels that could be characterized as having no effect on the overall market — tell a different story. There are serious doubts about SHIB's capacity to maintain any significant price growth in the medium term given the dramatic drop in token destruction activity. SHIB is currently trading close to short-term resistance at $0.0000106, but it is still far below important long-term moving averages.
From October lows around $0.0000090, the price has made a slight comeback, but the momentum is brittle and lacks the underlying forces that once propelled significant rallies. The burn mechanism, which is largely ineffective, is the main issue.
The overwhelming token supply effectively caps upside potential unless new deflationary measures are implemented, as each price increase is met with strong resistance in the absence of regular and significant burns.
However, as the burn activity has stopped, SHIB's price is now solely dependent on market sentiment and speculative trading — both of which are infamously erratic on the meme-coin market.
Technically, SHIB is exhibiting mild bullish signs, with short-term support forming at $0.0000095 and RSI hovering around 49. However, this recovery may soon stall in the absence of a revival of its token burn mechanism or new utility-driven catalysts.
Bitcoin moving up
After rising from last week's lows near $101,000, Bitcoin has been on a gradual but steady ascent, currently trading at about $105,900. The market's next possible flashpoint is located just above specifically around $111,700, even though the rebound appears to be technically sound. A large short position of 1.23K BTC is at risk of liquidation if Bitcoin is able to break above the $111,770 mark, according to data from the Hyperliquids Liquidation Map.
Analysts frequently refer to this as a liquidity magnet because it represents one of the biggest concentration zones of leveraged short positions in recent weeks. If the price of Bitcoin begins to move in that direction, it might set off a chain reaction of liquidations that could quickly raise BTC significantly. Because Bitcoin has been consolidating just below its important 200-day moving average near $108,000, this setup is particularly intriguing.
The technical catalyst for bulls to push higher and directly test the liquidation zone could be breaking through that resistance.
As traders get ready for volatility, volume has already been increasing: roughly 928 BTC have been traded on spot exchanges in the last day. On the downside, there is still a considerable chance of rejection if BTC does not gain enough traction to hit $111,700.
A decline below the short-term support levels of $104,000 to $103,000 could instead trap overly leveraged long traders, turning sentiment bearish once more. The $111,700 range is essentially a make-or-break threshold.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team