The market is on the verge of exiting the consolidation stage, with Shiba Inu, XRP and Cardano being on verge of their local formations that should boost volatility and push either asset into their next stage.

Shiba Inu at crossroads

With price action indicating the possibility of a significant breakdown, Shiba Inu is at a crucial crossroads. The token is stuck inside a narrowing triangle and is currently trading at about $0.0000123, but the overall structure is bearish.

Due to buyers’ inability to maintain momentum above resistance levels, each bounce has been weaker than the last. The consistent drop in trading volume is the most concerning indication. Volume has been declining since early August, which suggests that traders’ interest and involvement are waning.

Declining volume during consolidation frequently precedes strong breakouts in cryptocurrency markets, however, since SHIB is already under pressure, the likelihood of a breakdown rather than a recovery is higher.

Technically speaking, SHIB will encounter resistance right away in the range of $0.0000130-$0.0000132, and then the 200-day moving average close to $0.0000139. Every upward attempt has been capped for weeks at these levels. Support for the downside is located just above $0.0000120. The next target might be $0.0000110 or even $0.0000100, a level that runs the risk of adding another zero to SHIB’s valuation if it significantly breaks below this.

Additionally, a classic indicator of deteriorating market structure, the descending trendline from the recent highs, is still forcing lower peaks. Bearish momentum will probably prevail unless SHIB can break out above that line with significant volume. That is, there is a genuine chance of oblivion.

In addition to possibly correcting further, SHIB runs the risk of becoming irrelevant for traders seeking stronger momentum plays if support gives way while volume keeps declining.

XRP’s last test

It appears that XRP is nearing a final stand at its current price. The token is currently trading at about $2.83, just above the 100-day EMA at $2.77, which serves as the crucial line of defense. If XRP is unable to maintain this zone, it may fall toward $2.50 and ultimately the psychological $2.00 level.

The symmetrical triangle pattern that had been supporting the price since mid-August is clearly broken in the chart. XRP was forced below the lower trendline by sellers, and although it has stabilized for the time being, momentum is still brittle. A clear close below $2.77 would validate the bearish trend.

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The pattern in the volume adds to the uncertainty. The steady decline in trading volume is frequently an indication that sellers are worn out, and that bearish pressure is abating. However, low volume can also indicate fund outflows and disinterest, making XRP more susceptible to steeper drops when liquidity evaporates.

XRP has some breathing room for a recovery, as the RSI, which is currently hovering around 44 and reflecting neutral-to-weak momentum, does not yet exhibit any bullish divergence. Regaining $2.95-$3.00 is crucial for bulls. Strength would only be indicated by a persistent return above $3.00, which would pave the way for $3.10-$3.20.

XRP might still bounce back and reenter a consolidation range if support remains at the 100-day EMA. But if it fails, sentiment quickly shifts against it, making the path to $2.00 much more likely. This is a make-or-break situation for XRP investors for the time being.

Cardano’s patience

Cardano is putting its holders’ patience to the test once more. After weeks of losing momentum, the token is currently trading at a pivotal level, with bulls finding it difficult to maintain control. According to the short-term technical picture, the 100-day EMA and the crucial $0.80 support zone are both in the vicinity of ADA.

There is still hope for a recovery in ADA despite the negative undertones. The $0.80 area has previously shown itself to be resilient, serving as a base for several recoveries. Buyers can continue on their current trajectory toward $0.90 and $1.00 if they can defend this level once more.

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A psychological shift would be signaled by a breakout above $1, which might draw momentum traders and investors who had been sidelined back into the market.

However, volume trends are not very promising. Everyday trading activity has decreased, indicating a general decline in enthusiasm. This makes ADA susceptible because, when markets turn risk-off, a lack of conviction can hasten downward pressure. However, these quiet periods frequently come before explosive moves, so the next sessions are very important.

The indecision is highlighted by the RSI, close to 48, which is in neutral territory and does not indicate oversold or overbought conditions. This implies that ADA has some leeway.

In general, the market is struggling, as there isn’t much of bearish support coming in and the majority of investors are bracing themselves for multiple breakdowns, especially if Bitcoin fails to deliver in the next few weeks.

Ethereum (ETH) creator Vitalik Buterin says that the US government’s targeting of early Bitcoin (BTC) pioneer Roger Ver is an “absurd” and unreasonable persecution.

Ver, an early Bitcoin investor who later decided to support the Bitcoin Cash (BCH) fork, was arrested in Spain in late April of 2024 at the direction of the U.S. Department of Justice (DOJ).

He faces multiple charges, including mail fraud, tax evasion and filing false tax returns amounting to a maximum of 109 years in prison.

However, Buterin says the charges against Ver appear politically motivated and compares the case to that of Ross Ulbricht, who was sentenced to life in prison for creating the online marketplace The Silk Road before receiving a pardon from President Trump.

“Going to prison for the rest of your life over non-violent tax offenses is absurd. The case against Roger seems very politically motivated; like with Ross Ulbricht, there have been plenty of people and corporations who have been accused of far worse and yet faced sentences far milder than what Roger is facing.

The argument that the flashlight on him is motivated by things he said (namely, his advocacy of freedom and refusal to accept the legitimacy of coercive state power) seems compelling. This is worth standing against because selective prosecution for unrelated offenses is a common way of circumventing protections like the First Amendment (or in more authoritarian countries, even more basic things like the moral prohibition against punishing people for the crimes of their family members).”

Despite renouncing his United States citizenship in 2014 after obtaining citizenship in Saint Kitts and Nevis, authorities say Ver should have filed tax returns that reported capital gains from the sale of his worldwide assets, including his Bitcoin, and reported the fair market value of his assets.

Says Buterin,

“The US tax-by-citizenship and associated exit tax regime is extreme; the former is shared by almost no other countries in the world, and the latter is on the high end of what countries do (eg. UK only charges capital gains if you return within 5 years)…

Genuine good faith mistakes should be treated by giving the actor the opportunity to pay back taxes if needed with interest and penalties, not with prosecution.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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