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The market is in a transitional phase where a recovery could happen at any moment. But at the same time, investors should be prepared for a rapid decline, as no movement is guaranteed, with high volatility assets such as SHIBDOGE and BTC.
Technical level switch for SHIB
Shiba Inu and Dogecoin, two of the most famous cryptocurrency memes, have entered significant technical phases and are displaying unique triangle patterns on their daily charts. Both tokens are approaching potential breakout points that could determine their trajectories for the remainder of Q4 as volatility compresses and sentiment in the larger altcoin market is unclear.
SHIB is currently trying to stabilize near the key support level at $0.0000099 after weeks of volatility and one of the steepest declines in months. This area is technically more significant as it falls within a zone that has been tested several times over the past six months. From a chart perspective, SHIB is located inside a long-term descending triangle, which is surrounded by strong downside resistance (black 200-day MA) and a lower trendline that is gradually rising.
While the bottom near $0.0000095 offered constant support, every attempt to break above the $0.000012-$0.000013 range was rejected. Notably, the Relative Strength Index (RSI) is still around 38, indicating that the market is somewhat oversold, but has yet to show a clear sign of a reversal. In addition, trade volumes have been steadily declining, which may indicate that market participants are waiting for confirmation before deciding on a course.
Strong resistance awaits at $0.000013 to $0.000014 where a break above $0.0000115 to $0.000012 could restore confidence. On the other hand, a close below $0.0000090 would invalidate the support structure and expose SHIB to a more severe retracement – possibly as low as $0.0000075.
The neutral to bullish bias is supported by on-chain data: SHIB’s foreign exchange reserves are falling, indicating that holders are taking their tokens from centralized platforms – usually a sign of long-term accumulation. If the selling pressure continues to decline, this can reduce the amount of potential downside.
Dogecoin is a similar triangle
With resistance and support lines closely converging, dogecoin, which is currently trading at $0.193 also forms a symmetrical triangle. The direction of this pattern is still unknown, but usually indicates an impending volatility breakout. Despite rising almost 2% on the day, DOGE has shown more resilience than SHIB in recent sessions.
However, it is still below the 100-day and 200-day moving averages, which are between $0.22 and $0.23. The first clear indication of fresh bullish control would be a break above these levels. The asset’s price is currently squeezed between $0.19 and $0.20, which historically precedes strong moves, according to structural analysis.
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There may still be an opportunity for upside momentum before the token becomes overbought, according to the RSI at 40.8. However, the wider background is still unclear. Since its last significant high, DOGE’s volume profile has been thin, suggesting traders are hesitating for the latest market-wide correction. The next few candles may be decisive. A break above $0.205-$0.21 could pave the way to $0.30, which would be in line with the 200-day MA.
However, there may be a drop below $0.18 DOGE back to $0.16, perhaps rekindling bearish sentiment. The DOGE pattern appears more symmetrical than the descending SHIB pattern, suggesting that the two possible outcomes are more evenly distributed. However, its tenacity close to the current range suggests that the bulls are gradually regaining their confidence.
Shake-up for Bitcoin
After a tumultuous few weeks in which it lost and quickly regained ground around its long-term support, Bitcoin is once again at a critical point, hovering just above the $108,000 mark. Bitcoin may have one more chance to rally towards $120,000 before more widespread weakness occurs, although market sentiment remains cautious.
Bitcoin can be seen on the chart consolidating just above its 200-day moving average (black line), a historically significant level that often serves as a springboard for mid-cycle retracements. A tight compression range is currently being created with the orange 100-day MA currently printing overhead near $112,000.
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bitcoin is in a bind, and its short-term future will likely depend on which party breaks first. The Relative Strength Index (RSI), which indicates neutral to oversold conditions, is just above 41 from a momentum perspective. Meanwhile, trading volume has declined from a capitulation peak in early October, suggesting that selling pressure may ease as prices level out.
BTC may be the starting point for another move upwards if it can hold the support between $106,000 and $108,000. If momentum returns, it may first retest $114,000 and then $120,000. But there is not much room for error in the structure.
The asset could potentially fall as low as $100,000 or even $96,000, another important liquidity zone, if a daily close below the 200-day MA confirms a breakdown. However, the bulls have a strong technical case as Bitcoin has consistently shown resilience at this range and the long-term trend is still in place.
If there is a recovery, it could be the last medium-term correction before Bitcoin attempts to reach a new all-time high at the end of 2025. Bitcoin, simply put, is at an inflection point. If this line is maintained, $120,000 will again be within reach; in the event of its loss, a more significant market correction may be at risk.
