XRP has plunged into 'Extreme Fear' territory following a sharp 19% correction from its year-to-date high of around $2.40 on January 5. The altcoin recently fell back below the critical psychological level of $2.00, souring sentiment among retail traders who have shifted from euphoria to pessimism in less than three weeks. Market analysts note that such extreme negative sentiment can act as a contrarian indicator, potentially marking a local bottom and setting the stage for a challenge of resistance levels once fear subsides.
Meanwhile, Shiba Inu (SHIB) is experiencing a dramatic collapse in trading volume, hitting its lowest level of 2026. This signals significant market apathy, with activity described as 'essentially nonexistent' by SHIB's standards. The lack of volume indicates a blatant lack of conviction from both buyers and sellers, with the asset drifting rather than trading. However, some technical analysis suggests SHIB may be stabilizing after a protracted decline, trading within a tightening range and showing signs of seller fatigue, with bearish volume decreasing during pullbacks.
Dogecoin (DOGE) is showing signs of potential momentum, with its price trading between the lower Bollinger Band at $0.1226 and the upper band at $0.1554—a volatility range of roughly 30%. In the last 24 hours, DOGE climbed from a low of $0.1207 to $0.1285, and its trading volume surged by 5.39% to $1.38 billion. This suggests renewed investor interest and a potential bullish mode, with a breakout possibly pushing the price above $0.16.
The broader crypto market is posting a notable recovery, climbing 1.79% in the last 24 hours. Ethereum (ETH) finds itself at a technical crossroads, trading in a narrow zone that will likely determine its medium-term direction. While trying to create higher lows, ETH remains capped below significant resistance levels, with trading activity increasing during sell-offs but decreasing during rebounds, indicating bearish conviction persists.
XRP continues to test investors' patience as price action remains fixed around $2, a level that has become a technical and psychological battlefield. The asset shows a possible double bottom formation, indicating seller fatigue, but requires a persistent rise above $2 to confirm a reversal and pave the way for a more extensive rebound.
