I have been watching the crypto market closely over the past few weeks, and in my research, one thing became very clear. Selling pressure was strong, confidence was weak, and many traders were stepping back. But recently, things have started to change, at least for now. Assets like XRP, Ethereum, and Shiba Inu are showing signs that buyers are slowly returning after a long period of decline.
When I started to look deeper into XRP, I noticed that it had been stuck in a steady downward path for weeks. Every time the price tried to move up, sellers quickly pushed it back down. Important price levels were broken, and trust faded among both small traders and bigger investors. XRP moved closer and closer to oversold levels, which usually happens when fear dominates the market.
Then something interesting happened. Buyers began entering near strong support areas, and the reaction was sharp. In my search, I found that trading volume during this bounce reached almost one billion dollars across major exchanges. This is important because price moves without volume usually do not last. Here, a large amount of money was clearly used to fight the sellers. Because of that, XRP managed to recover some short term levels that had previously acted as breakdown points. Momentum indicators also started to improve. The RSI, which had been extremely low, began to turn upward, suggesting that selling pressure was losing strength.
Still, I have learned that caution is necessary. Weekend trading often exaggerates price moves, and real confirmation usually comes when normal market activity resumes. If sellers return strongly at the start of the week, this bounce could fade quickly. For now, it looks like a pause in selling rather than a full trend reversal.
Ethereum showed a similar story but with even more tension. During the recent sell off, Ethereum nearly fell below the important two thousand dollar level. This area has strong psychological value, and losing it would have damaged confidence further. In my research, I saw that panic selling and liquidations pushed Ethereum through multiple support zones very quickly.
Once selling slowed down, buyers stepped in aggressively. Ethereum climbed back above two thousand dollars and stabilized. Trading volume increased during this move, which tells me that this was not only short covering. Many traders likely saw value at these lower prices and started accumulating. Oversold conditions played a big role here, as markets often react strongly when fear becomes extreme.
Even so, Ethereum still faces challenges. The price is still below major moving averages, which means the broader trend remains corrective. For a stronger recovery, Ethereum will have to hold above two thousand dollars and eventually move toward higher levels where previous support turned into resistance. In my view, if overall market sentiment improves and Bitcoin stays stable, Ethereum has a chance to slowly rebuild momentum. But if two thousand dollars fails again, selling pressure could easily return.
Shiba Inu tells a slightly different but equally important story. I started to know about how deeply oversold it had become when I looked at its RSI. The indicator dropped to levels that are rarely seen, showing one of the most extreme oversold conditions in a long time. This came after months of steady decline, during which multiple support zones were broken.
What stood out in my research was the combination of heavy selling, rising volume, and extremely low RSI. These conditions often signal capitulation, a phase where sellers become exhausted and weaker hands leave the market. This does not guarantee a recovery, but it often opens the door for a relief rally.
Shiba Inu is still trading below key moving averages, so the overall trend is negative. But markets do not move in straight lines. When downside momentum becomes weak, even small buying pressure can trigger strong short term moves. If Shiba Inu can hold around current levels, it may attempt to move back toward areas that previously acted as support.
I have also learned that oversold conditions alone are not enough. If the broader crypto market weakens again, Shiba Inu could still fall further. But compared to previous weeks, the downside risk now looks less aggressive. For traders who manage risk carefully, these conditions often create short term opportunities.
Overall, after researching these assets, it feels like the market has entered a phase where fear is cooling down and buyers are testing the waters again. This does not mean the downtrend is over, but it does suggest that selling pressure is no longer as strong as before. The coming days will be important, especially when full market participation returns. Whether this becomes a true recovery or just a temporary bounce will soon become clear.
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