As the asset drops back into the $2 range, XRP is back in the neutral $2 price range. This represents a dramatic reversal from the robust bullish momentum, which was seen days earlier. As seen on the daily chart, XRP has not been able to maintain its push above the $3 mark. The most recent rejection took place at the 26-day EMA, a significant short-term resistance level that has now turned into a price action ceiling.

XRP entered a corrective phase after reaching a peak of about $3.70 in mid-July. As soon as the asset broke out of the $3.10-$3.00 support zone, selling pressure increased. Recent declines into the $2.94-$2.95 range have left XRP in a precarious technical position. The more important structural support is near $2.35, which is in line with the 200-day moving average, could be revealed by a sustained close below this level followed by deeper supports at $2.69 and $2.60. 

The bearish undertone is further enhanced by volume trends. The significant drop in trading activity during the pullback indicates that buyers are not entering the market with the same vigor as during the early July rally. Momentum is waning, as evidenced by the Relative Strength Index (RSI), which has cooled from overbought levels above 75 to the current neutral zone at 54. 

The short-term battle line for XRP is obvious: to regain the 26 EMA, or about $3.05, in order to revive bullish sentiment, the line has to be broken. Without that, XRP might be pulled further into the $2 district because the path of least resistance seems to be lower. XRP’s mid-year surge still maintains an overall uptrend on longer time frames, but things are changing rapidly.

Bitcoin: This is what is blocking it

Bitcoin is consolidating at a narrow technical zone, with the 50-day EMA (near $112,600) acting as short-term support and the 26-day EMA, which is an immediate resistance. Following its decline from the $122,000 peak in mid-July, Bitcoin remained in sideways consolidation due to this EMA crossfire. It appears from the recent price action that bulls and bears are at a standstill. 

In order to avoid further losses, buyers have intervened at the 50 EMA, while sellers have stopped the upward momentum at the 26 EMA. Depending on which side takes control, this condensed trading range may soon break out. In addition, the Relative Strength Index (RSI), which is currently at 52, has been trending downward. From overbought conditions above 75 during the July surge, this is certainly a relief for investors.

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A healthier base before a move higher may be in store, as the RSI cooldown suggests that Bitcoin has shed some of its overly bullish froth. BTC’s withdrawal from the overbought area may be viewed as a positive reset from a sentiment standpoint, particularly if it remains above the 50 EMA.

The path toward $118,000-$120,000 would reopen with a strong push above the 26 EMA, and if inflows resume, the $122,000 resistance zone would once again be in focus. But a break below the 50 EMA might lead to a retest at $108,200, where the 100-day EMA and the area of prior price consolidation meet.

Shiba Inu bulls lose control

The most recent price movement has shown that bulls no longer control the market, and Shiba Inu has once again let bullish traders down. Before it could even test the 50-day Exponential Moving Average (EMA), SHIB’s momentum cooled off after a modest recovery attempt, indicating a lack of market conviction and weak buying pressure.

Historically, the 50 EMA has been a reliable midterm resistance level, and it is currently trading close to $0.00001296. Before facing opposition, SHIB at least attempted to test this level in previous rallies. However, the token’s price this time came close to the zone before abruptly reversing, demonstrating that sellers are still in complete control. This hasty retreat is indicative of a general change in attitude.

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Retail traders participated heavily in SHIB earlier in the year, helped by brief speculative rallies. The price structure now displays lower highs and volume has decreased, highlighting the decline in bullish momentum. The failure to even challenge the 50 EMA indicates that in the absence of a strong catalyst, market participants are hesitant to commit to long positions.

If SHIB continues to hold above $0.0000120, a short-term support zone will be formed. But losses could accelerate toward the $0.0000115-$0.0000110 range, which has stronger historical support if this level is broken. Any attempt at recovery will encounter layered resistance in the interim, which begins at the 50 EMA and extends toward the $0.00001324-$0.00001450 zone.

With no indications of an impending reversal, the Relative Strength Index (RSI) is still muted at about 44. SHIB runs the risk of declining in a slow grind in the absence of new buying inflows or a buzz from the general mood of the market, leaving opportunistic traders to wait for larger discounts before intervening. The most recent unsuccessful rally attempt, in summary, serves as further evidence that the bears currently control the Shiba Inu market.

With the 200-period moving average applying dynamic resistance from above and horizontal support showing signs of strain, DOGE’s technical landscape suggests a potential collapse could be on the horizon if buyers fail to defend key levels.

Price Coils Within Bearish Formation Ahead Of Potential Breakout

Market analyst Thomas Anderson, in a recent post on X,  pointed out that “DOGE is consolidating within a descending triangle pattern on the M30 timeframe,” signaling a period of indecision. This chart pattern, often seen in bearish continuations, is characterized by a flat support base with lower highs pressing from above. As Dogecoin trades deeper into this structure, the probability of a breakout, either upward or downward, is increasing with each narrowing move.

Anderson further explained that DOGE is “currently testing the upper resistance around $0.19998,” a key level that has capped recent bullish attempts. This resistance aligns with the descending trendline of the triangle and is strengthened by the 200 MA (red line), acting as dynamic resistance. 

The presence of the 200-period moving average at this level adds extra weight to the upper line, making any potential breakout attempt more challenging for the bulls in the near term. Until price action breaks decisively in either direction, DOGE remains locked in a tightening range. For now, Anderson’s observations underline the importance of this technical structure, as DOGE nears a critical inflection point.

Triangle Compression Builds Tension For Dogecoin

The analyst further emphasized that momentum appears to be weakening as Dogecoin’s price action tightens near the apex of the descending triangle. According to the expert’s observations, the 1-hour chart reinforces this broader consolidation phase, showing a clear compression of price within the pattern. This type of setup often leads to an explosive move once the market chooses a direction. 

A confirmed breakout above the $0.19998 resistance could pave the way for a short-term bullish run, with higher targets potentially opening up if volume supports the move, potentially invalidating the bearish triangle pattern. However, failure to breach this resistance level may reinforce the bearish structure, increasing the likelihood of a pullback toward the lower triangle support around $0.19010, a critical area where buyers previously stepped in.

The move began around 21:00 UTC on Sunday, when bitcoin spiked more than $2,500 in less than an hour — a pattern that can be attributed to thin weekend liquidity and potential algorithmic buying triggered by technical levels.

Such price action was a textbook short squeeze followed by aggressive profit-taking or stop-run. A short squeeze happens when traders betting against a price (short sellers) are forced to buy the asset as it rises, to cover their losses, which pushes the price even higher and often very quickly.

The sudden move wiped out over $460 million in long positions and $220 million in shorts, across futures tracking majors like ether (ETH), solana (SOL), and dogecoin (DOGE).

The liquidation wave was notable for occurring during traditionally quiet weekend hours, an unusual event that marks forced selling or buying activity by a major player.

SOL, DOGE and XRP prices are down more than 4% in the past 24 hours, data shows, with the broad-based CoinDesk (CD20) down more than 2%.

The volatility follows a week of macro uncertainty, with Moody’s cutting the U.S. credit rating on Friday and inflation fears resurfacing after mixed economic data. The downgrade also led to U.S. 30-year treasury yields breaching the 5% mark.

While crypto has broadly benefited from renewed institutional inflows and spot ETF momentum, traders remain cautious at current price levels, as reported.

Bitcoin is flat over the past week, but the recent failure to hold above $106,000 — a key psychological and technical level — may signal near-term resistance, FxPro’s Alex Kuptsikevich told CoinDesk last week.

Meanwhile, some traders anticipate higher volatility in the days to come in a warning sign for those looking to leverage their bets.

“Investors are shifting capital to Bitcoin as concerns grow over a pending US spending bill that could add trillions in debt and push for higher Treasury premiums,” Haiyang Ru, co-CEO of the HashKey Business Group, told CoinDesk in a Telegram message.

“But while bitcoin hovers just below new highs, we anticipate more market volatility as traders prepare for new trade deals and a final version of the fiscal policy,” Ru added.

Read more: U.S. 30-Year Treasury Yield Breaches 5% Amid Moody’s Rating Downgrade, Fiscal Concerns

According to a May 16 report from Bloomberg, Roelof Botha, Managing Partner at Sequoia Capital, was among the victims whose personal information was compromised.

The breach, which targeted Coinbase users through a social engineering campaign, allegedly stemmed from a bribery scheme involving customer service agents contracted by the exchange.

Botha Manages Assets Worth Hundreds of Millions

While Botha’s personal holdings remain undisclosed, he is believed to manage assets worth hundreds of millions.

Coinbase confirmed the incident in a May 15 blog post, stating that cybercriminals had gained access to customer data by exploiting internal support systems.

The attackers reportedly demanded a $20 million ransom, which Coinbase refused. The full scope of the breach remains unclear.

Security teams at Kraken and Binance are also investigating similar intrusion attempts, Bloomberg reported, although neither exchange has publicly confirmed exposure.

Philip Martin, Coinbase’s Chief Security Officer, revealed that the compromised support staff were based in India and have since been terminated.

The company has filed a disclosure with the U.S. Securities and Exchange Commission, estimating remediation costs between $180 million and $400 million.

The breach hit Coinbase’s stock hard, with shares (COIN) dropping over 7% to $244 before recovering slightly to $264.24.

Meanwhile, Coinbase CEO Brian Armstrong was seen in Washington, D.C., engaging with lawmakers as Congress debates two key pieces of crypto legislation — one on stablecoins and another on digital asset market structure.

The breach comes at a critical moment for the crypto industry’s regulatory outlook and could influence legislative sentiment as the bills move toward a vote.

Coinbase Q1 Revenue Climbs, But Profit Falls 94%

Coinbase reported mixed first-quarter results, with revenue rising 24% year-over-year to $2 billion, but falling short of analyst expectations and down 10% from the previous quarter.

While transaction revenue grew to $1.26 billion, its subscription and services division—covering staking and custodial offerings—rose 37% to nearly $700 million, reflecting growing diversification beyond trading.

Despite the revenue uptick, net income plunged 94% to $66 million as the company marked down its crypto holdings amid market volatility.

Adjusted earnings stood at $526.6 million, or $1.94 per share, still below last year’s figure of $2.53. Operating expenses surged 51% to $1.3 billion due to aggressive marketing and asset write-downs.

Coinbase’s earnings were weighed down by unpredictable macroeconomic conditions and fluctuations in digital asset prices.

However, the company noted its second-highest ever monthly user count, with CFO Alesia Haas highlighting increased engagement across non-trading services.

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