Bitcoin and altcoins plunge: SHIB, XRP, DOGE hit oversold
Cryptocurrency markets are seeing heavy forced selling. The article highlights that Bitcoin (Bitcoin) suffered one of the year’s sharpest selloffs, with major liquidation waves and panic pressure.
Bitcoin slid from above $80,000 to near $60,000. Trading volume spiked, and the daily RSI dropped to the low 20s—deep oversold territory. Analysts expect a base-building phase and possible short-term relief rallies, but Bitcoin remains below key moving averages (50/100/200 day). First resistance is cited at $70,000, with $74,000–$75,000 as an additional hurdle. Near $62,000–$63,000, price action suggests selling pressure may be easing, not yet reversing.
Altcoins show similar oversold signals:
- SHIB: After breaking down from an ascending channel, SHIB fell to about $0.0000045. RSI is reported around 27–30. Buyers are attempting support, but SHIB is still below the 50/100/200 day moving averages, so upside looks more like a reaction than a trend change.
- XRP: A breakdown from a descending triangle pushed XRP from the $1.28–$1.30 support zone down to around $1.10. The price is trying to form a base near $1.15–$1.18, while resistance remains far above (50D ~$1.27, 100D ~$1.35, 200D ~$1.40).
- DOGE: After losing an uptrendline support (since February), DOGE dropped to about $0.085. RSI below 30 suggests bounce potential, but moving-average resistance (50D near $0.096, 100D near $0.102) may cap rebounds.
Overall, forced selling is pushing Bitcoin (Bitcoin) and large caps into oversold conditions, but recovery likely needs confirmation via moving-average reclaiming.
Bearish
This is classified as bearish because the dominant narrative is forced selling and price weakness across large caps, even though oversold conditions may trigger short-term relief.
Similar past patterns often show that when RSI drops to extreme levels (like Bitcoin’s low-20s reading here) after liquidation cascades, markets can bounce briefly—but sustained rallies usually require reclaiming key moving averages and breaking through major resistance (e.g., the $70,000 and $74,000–$75,000 zones for Bitcoin). Until that confirmation appears, bounces are frequently characterized as counter-trend reactions.
Short term (days to weeks): Traders may see volatility spikes, mean-reversion bounces in SHIB, XRP, and DOGE (RSI near/below 30), and active liquidation-driven swings. However, resistance overhead and the continued positioning below key moving averages increase the odds of sellers reasserting control.
Long term (weeks to months): The article suggests base-building rather than a new confirmed uptrend. If Bitcoin continues stabilizing and later regains 50/100/200-day moving averages, the risk can shift from bearish to neutral/bullish. For now, the lack of trend-reversal confirmation keeps the probability skewed to the downside.