Critical Shiba Inu (SHIB) Breakdown Raises Questions, Dogecoin (DOGE) on Fundamental Support, Bitcoin (BTC) Recovery Isn't So Unrealistic

Shiba Inu Faces Steep Decline amid Heavy Whale Selling

Shiba Inu (SHIB) has experienced a significant decline in recent days, causing concern among investors. The token's technical structure has weakened considerably, with price falling below the crucial 200-day Exponential Moving Average (EMA). This decline has been accompanied by a sharp drop in investor confidence and trading volume, with SHIB losing nearly 60% of its activity.

Exacerbating the situation are large holders, known as whales, who are aggressively selling their SHIB positions in large quantities. This massive liquidation trend has created immense selling pressure, making it challenging for SHIB to establish solid support at current levels.

With the 200-day EMA breached, the token is now vulnerable to further corrections. If selling pressure continues, SHIB could test significant support at $0.000015 and, in a worst-case scenario, potentially drop as low as $0.000011.

Despite the bleak outlook, a reversal is not entirely out of the question. Should SHIB reclaim the $0.00002 level with a surge in volume, it could attract speculative buyers and stabilize. However, this would require substantial market participation, which is unlikely given the current sentiment.

Dogecoin Approaches Critical Point

Dogecoin (DOGE) is also facing a steep decline, approaching a turning point. The token has already fallen below its 100-day EMA, a crucial support level that has historically acted as a safety net for investors. This breach raises significant doubts about DOGE's ability to maintain its recent bullish trajectory.

DOGE is currently trading between $0.32 and $0.25, perilously close to its next major support level. A break below this level would signal a complete reversal of its recent bullish rally, likely triggering a wave of panic selling. Following such a move, DOGE could retrace its earlier gains and enter a prolonged bear market.

Compounding DOGE's woes is the lack of buying power. Volume has noticeably decreased due to market uncertainty, indicating that traders are pulling back. The Relative Strength Index (RSI) is also declining, suggesting that momentum is firmly on the bearish side.

If DOGE manages to recover above the 100-day EMA in the coming days, it could avoid a deeper correction. However, given the overall market sentiment, this would require a significant surge in buying activity, which does not seem likely at this time.

A rebound at this level, however, could provide some hope for bulls and pave the way for a recovery rally towards $0.35 and higher. Investors should closely monitor the $0.25 support level. A breakdown below this level would not only mark the end of DOGE's bullish phase but could also open the door to further declines, potentially reaching as low as $0.20.

Bitcoin Drops Below $100,000

Bitcoin's recent decline below $100,000 has raised concerns among investors. However, a closer examination of its technical indicators suggests that a recovery may not be too far away.

The token is currently trading near its 50-day EMA, a crucial support level that has historically been a launchpad for price rallies. As long as Bitcoin remains above the 50 EMA, which is often seen as a turning point for short-term trends, bulls remain in control.

Given its current position, Bitcoin could make a comeback above $100,000 in the coming days if buying pressure increases. There are no signs of a major breakdown in the asset's overall structure at this time.

Volume patterns are currently mixed. While there has been a recent dip in buying interest, the selling pressure has not been strong enough to push Bitcoin below other key support levels, such as $95,000.

The balance between buyers and sellers suggests that the market may be consolidating and preparing for its next significant move. To confirm a recovery, Bitcoin would need to reclaim $100,000 and build momentum above this psychological barrier. Breaking this level would restore confidence and potentially trigger a breakout towards $105,000 or higher.

Conversely, if Bitcoin fails to hold the 50 EMA, it could face further declines, with $91,000 emerging as the next critical support.