Bitcoin Forms Head and Shoulders Pattern, XRP and Dogecoin Show Weakness

Bitcoin's Critical Crossroads

Bitcoin is forming a Head and Shoulders pattern, a potential bearish reversal signal. After reaching nearly $96,000, Bitcoin has formed a structure resembling the right shoulder of this pattern, with the left shoulder at $84,000 and the head at $96,000. The neckline, between $83,000 and $85,000, is a critical support level.

While the golden cross earlier this month signaled bullish momentum, Bitcoin's price action has stalled, with declining RSI and lackluster volume. A drop below the neckline ($87,000-$88,000) could lead to a deeper correction, potentially testing the 200-day EMA near $86,000. However, a strong bounce from the neckline could invalidate the bearish pattern, especially if macro factors or ETF inflows intervene. Bitcoin's next move within the $88,000-$93,000 range will likely determine its short-term direction.

XRP Tests Long-Term Support

XRP has fallen below key short-term moving averages, including the 50 and 100 EMAs, after its rally stalled at $2.30. It is now testing the 200-day EMA near $1.98, a critical support level. If XRP holds this level, it could maintain its long-term bullish structure, but the outlook is cautious.

Declining volume and a falling RSI (currently near 42) suggest weakening momentum. A breakdown below the 200 EMA could trigger a sharp decline, potentially testing $1.90 or even $1.75. To reverse the downtrend, bulls need to reclaim the $2.15-$2.17 resistance zone, which aligns with the EMA confluence XRP has recently lost.

Dogecoin's Bearish Signals

Dogecoin is showing signs of vulnerability after breaking below its 50-day EMA at $0.17. It is now trading near $0.165, hovering above a fragile support level. If this support fails, DOGE could drop to $0.155 or even $0.145, a historical bounce zone.

Declining volume and a neutral-to-bearish RSI (currently at 44) suggest a lack of conviction among traders. While DOGE's unpredictability due to its community-driven nature remains a factor, the technical setup favors further declines unless buying interest resumes. Bulls need to reclaim $0.17 to shift momentum back in their favor.

The next few days will provide clarity on whether Bitcoin, XRP, and Dogecoin can regain their footing or if a broader market correction is unfolding.