Will Bitcoin (BTC) Reach ATH Again? XRP’s Gains Nullified, Shiba Inu’s (SHIB) 40% Drop Raises Questions

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Written By Maya Cantina

Thu, 7/03/2024 – 0:30

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Contents

  • XRP looks bleak
  • Can Bitcoin reach highs again?

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Shiba Inu has undergone a dramatic 40% drop, leaving us with many questions. 

A look at the price chart indicates a sudden sharp correction after a period of extraordinary gains, which is not uncommon for the volatile nature of SHIB. The digital asset experienced an astonishing rally that propelled it to significant highs, only to be followed by a rapid decrease. Such movements often test support levels, and in this case, SHIB found some footing after the drop.

https://www.tradingview.com/
SHIB/USDT Chart by TradingView

The recent drop has breached several support levels that were previously able to hold during upward momentum. However, new resistance levels have formed in the aftermath of the decline. Should SHIB attempt to recover, it would need to break through these levels to signal a potential comeback.

Market sentiment around SHIB remains cautious. The massive holdings by the founder, known colloquially as a “whale,” can lead to concerns about market manipulation and the potential for huge sell-offs that could drastically affect the price. The worry is that if the founder decides to liquidate a portion of their holdings, it could lead to further severe market corrections.

From a bullish perspective, SHIB’s community-driven approach and its growing ecosystem could help the cryptocurrency bounce back, especially if more use cases emerge, or if it gains further adoption. However, the bearish scenario is a continuation of the correction, particularly if the market starts to see movement from the founder’s wallets, which could trigger panic selling.

XRP looks bleak

XRP’s recent price chart shows a peak that quickly gave way, leading to a rapid erasure of gains. After an optimistic rise, the market correction has been swift and unforgiving. Technical analysis indicates that XRP has breached key support levels, namely around the $0.60 mark, which previously served as a strong foothold during its ascent. The failure to maintain this critical level could indicate bearish sentiment taking hold among investors.

As XRP’s price descended, the next major support zone is found near the $0.55 to $0.57 range, a region where the asset has consolidated in the past. If this support fails to hold, the price could slide further to test the next support level near $0.50, a psychological barrier and a significant level of interest historically.

The current resistance lies at the recent peak, and reclaiming this level would be essential for XRP to regain its upward momentum. A bounce back with significant volume could see XRP aiming to challenge higher resistance levels.

Can Bitcoin reach highs again?

The Bitcoin market has been a whirlwind of activity, as its price has reached a major new threshold. A recent and sudden descent from $69,000 to $59,000 left market watchers stunned as a 14-year-old dormant whale account unloaded a substantial holding, casting ripples across the cryptocurrency landscape. This event marked a potential local top, but the resilience of Bitcoin suggests a recovery could be on the horizon.

The Bitcoin chart reveals that after the sharp drop, the currency is attempting to claw back, indicating strong buying interest at lower levels. A key support level at $59,000, corresponding with the whale’s sell-off, has proven to be robust, with the price bouncing off this mark. The swift recovery to levels above $60,000 underscores the relentless demand for Bitcoin despite sudden market shocks.

The immediate resistance facing Bitcoin is now formed by the previous high at around $69,000. Traders and investors will be watching this level closely to see if it turns into resistance or if Bitcoin can break through convincingly.

If Bitcoin fails to sustain its recovery, it might find support at the $59,000 level once more. A break below this could lead to further sell-offs as stop-loss orders get triggered. In such a bearish scenario, Bitcoin could enter a consolidation phase or correct further, testing lower support levels around $55,000.

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