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The market is not seeing enough support that would be enough for a proper long-term reversal. Unfortunately, large investors are not sitting on the sidelines, watching market growth. Instead, they are actively selling assets like Shiba Inu, Bitcoin and Ethereum.
Shiba Inu took a punch
In what seems to be its biggest denial since September 2025, Shiba Inu has once again failed to make the transition into a sustainable recovery. SHIB was firmly rejected at a crucial technical level following a brief upside attempt at the beginning of 2026, supporting the notion that the asset is still structurally weak and susceptible to further declines.
The 100-day exponential moving average was the crucial moment of failure. The most recent rejection validates the significance of this level, which has continuously served as a trend-defining barrier for SHIB. Short-term optimism was sparked by the price's brief push into this zone, but the absence of follow-through volume and the immediate selling pressure indicate that the move was more of a liquidity grab than the beginning of a real trend reversal.
Sellers intervened forcefully after the price stalled at the 100 EMA, ending any possibility of a smooth recovery phase. SHIB is still trapped in a descending structure from a more general technical standpoint. Momentum indicators show hesitancy rather than strength and lower highs continue to rule the chart.
Assets that are trying to make an early comeback during a wider downtrend typically exhibit this behavior. The implications for the future are not very promising. Since the 100 EMA is now obviously acting as resistance, SHIB might have to go back to lower support zones in order to identify actual demand. A deeper retracement is more likely if buyers are unable to hold recent local lows.
It appears that market players are still putting capital preservation ahead of speculative exposure because there is not much buying interest at resistance. That being said, there is no assurance of a severe breakdown.
It is still possible for consolidation to take place below resistance, particularly if overall market conditions stabilize. However, SHIB's price action suggests continuation risk rather than recovery in the absence of a clear improvement in volume dynamics and a decisive reclamation of the 100 EMA.
Bitcoin's safety cushion
Once more, Bitcoin is getting close to a point where a single technical level could determine the market's trajectory for several weeks. The 26-day exponential moving average, which is currently serving as the asset's short-term lifeline, has drawn attention following a dramatic sell-off and an erratic attempt at a rebound.
In the past, when Bitcoin's trend was changing, the 26 EMA was crucial. It frequently serves as dynamic support in robust markets, absorbing selling pressure and enabling the price to regain momentum. After failing to regain higher moving averages, Bitcoin is currently perilously close to this level. Although conviction is still brittle, buyers appear to be active based on the recent recovery from local lows.
It will be a sign that sellers are losing control in the near future if Bitcoin is able to hold above the 26 EMA and consolidate. The 50 and 100 EMAs are examples of higher resistance levels that could be challenged by Bitcoin in this scenario, which opens the door to a wider recovery. The market is transitioning from panic-driven selling to a more balanced structure, where accumulation becomes feasible if the 26 EMA is successfully defended.
This result is by no means certain, though. Technical harm has already been done to the larger trend, and the volume during the recovery has not been very compelling. The recovery attempt would probably be invalidated, and Bitcoin would be subject to fresh downside pressure if there was a clean breakdown below the 26 EMA. In that scenario, the market might return to lower support zones, prolonging the corrective phase well into the year's early months.
Ethereum's potential stabilization point
Instead of continuing the recent sell-off, Ethereum is currently trading in a zone that points to stabilization. ETH has been able to slow its downward momentum and is now exhibiting structural improvement following weeks of corrective pressure. The current price behavior indicates a market that is trying to normalize rather than unravel even though the larger trend is still recovering from earlier damage.
The relationship between Ethereum and the 26-day exponential moving average is among the more significant developments. Sellers are no longer in complete control, as this level has begun to function as short-term dynamic support.
After rising from recent lows, the price is consolidating near this moving average, which frequently acts as a transitional area when trends change. Instead of preparing for another rash decline, holding above the 26 EMA would indicate that Ethereum is creating a base.
The next crucial benchmark is the 50 EMA, which is a little higher. In the past, this level has determined whether Ethereum is in a recovery phase or is still stuck in a corrective structure. A gradual approach to the 50 EMA followed by sideways consolidation would suggest that the market is effectively absorbing previous losses.
When volume and general market conditions cooperate, such behavior frequently precedes more long-lasting upward movements. This interpretation is reinforced by momentum indicators. The RSI is currently in a neutral-to-positive range, indicating balance rather than excess after recovering from oversold conditions.
This lessens the likelihood of an immediate breakdown but does not ensure a bullish continuation. But there are still risks. Major long-term resistance levels for Ethereum have not yet been reclaimed, and a failure to hold the 26 EMA could swiftly reopen the downside. The recovery still depends on the stability of the market as a whole.
Godfrey Benjamin
Gamza Khanzadaev
Arman Shirinyan
Alex Dovbnya