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Shiba Inu gave back almost all of its July gains. After creating bullish sentiment by momentarily rising above the crucial $0.000015 level, SHIB has since fallen back toward $0.0000135, wiping out weeks of upward movement in a matter of days. A failed breakout is evident from the price chart.
SHIB appeared ready for a continuation rally after rising through mid-July on increasing volume and regaining the 200 EMA for the first time in months. But as selling pressure increased close to the resistance zone of $0.0000155, the momentum swiftly turned around. A multi-day sell-off ensued, slicing through the 200 and 50 EMA's two crucial support levels that were supposed to hold.
SHIB is currently on the verge of further breakdown territory and is having difficulty keeping its price stable above the 100 EMA. A decline in bullish strength is indicated by the RSI, which has dropped precipitously from overbought conditions and is currently hovering just above the neutral zone. On red candles, volume has increased, suggesting aggressive distribution and panic selling by holders.
The next downside targets, which are former consolidation zones that are now merely weak safety nets, are $0.0000125 and even $0.0000113 if SHIB is unable to maintain the support around $0.000013. The price increase in July was mostly caused by on-chain accumulation spikes, whale activity and speculation.
The rally was based on shaky ground, though, in the absence of consistent volume or wider market support. The analysis shows that SHIB still reacts very quickly to changes in sentiment and does not have the same structural support as larger-cap assets.
Dogecoin's hit
Just now Dogecoin shocked the market with a 22% decline that surprised everyone. Following a strong rally that lifted the meme token above $0.28, investors anticipated consolidation or a slight retracement rather than a complete reversal. However, the most recent action reversed the majority of DOGE's recent gains, possibly halting the market's growing bullish momentum.
According to the chart, DOGE had been experiencing a robust uptrend, easily surpassing significant moving averages such as the 50, 100 and 200 EMAs. As bullish sentiment returned, volume had been increasing steadily. The rally ended with a sharp decline from below $0.20 to almost $0.29, which forced DOGE into overbought RSI territory (above 70), indicating that caution was necessary but not a major crash.
Critical support levels were erased when the asset abruptly dropped back to the $0.24 zone. The sell-off was confirmed to be genuine and not just noise when it was accompanied by an aggressive volume spike.
In addition to harming DOGE's short-term outlook, this type of price action may also dampen sentiment toward meme coins and other high-beta assets generally. This is even more detrimental because DOGE was leading the altcoin's speculative movement during the most recent upswing. Confidence in the entire market could be weakened by a breakdown at this point, particularly among retail investors looking to make fast momentum trades.
Ethereum seems untouchable
Ethereum is exhibiting a remarkably robust performance, defying the general market narrative and maintaining its position despite the retreat of numerous prominent altcoins. With few pulldowns and robust structural support, ETH maintains its dominance while others suffer from marketwide profit-taking.
ETH is riding a strong bullish wave from a technical perspective. It surged higher, hitting almost $3,900 a few days after breaking through its multi-month resistance at $2,700. Instead of being a speculative flash, the volume has stayed steady throughout this rally, which is a positive indication of ongoing interest.
Despite a slight cooling of RSI metrics from overbought levels, the asset remains comfortably above important support lines, such as the psychologically significant $3,200 zone and the 50 EMA. Reaction to the market environment is one of the most obvious indicators of ETH's strength. Bitcoin SHIB, DOGE and other significant assets are either declining or staying the same, but ETH is still rising, making higher lows and fending off significant corrections.
A lack of aggressive selling pressure and institutional confidence are two essential components for long-term growth, and this type of behavior conveys both. Furthermore, Ethereum is becoming more dominant than the larger altcoin market, which suggests that investors may shift their money into ETH during uncertain times.
It is much more likely that ETH will continue to rise to $4,000+ if it can maintain its position above the $3,500-$3,600 range in the upcoming days. Ethereum is currently displaying remarkable resilience and may wind up pulling the market out of its corrective slump rather than being pulled down by it.
Vladislav Sopov
U.Today Editorial Team