The cryptocurrency market is experiencing notable fluctuations as sentiment around XRP has shifted to “Extreme Fear,” while trading volume for Shiba Inu (SHIB) has plummeted to its lowest level of 2026. Meanwhile, Dogecoin (DOGE) is positioned for a potential breakout, with analysts noting a possible 30% price increase.
XRP Experiences Sharp Decline
Recent data shows that the social sentiment surrounding XRP has deteriorated significantly, reflecting a steep 19% correction from its year-to-date high of approximately $2.40 reached on January 5. This decline has shifted retail traders’ mood from euphoria to pessimism in less than three weeks, pushing XRP back under the crucial psychological threshold of $2.00.
Despite the current negative sentiment, experienced market observers suggest that extreme fear can often serve as a counter-indicator for price movements. Historically, when a consensus leans heavily bearish, prices tend to rebound. If this trend holds true, the prevailing pessimism may mark a local bottom, allowing XRP to challenge resistance levels once the fear subsides.
SHIB Trading Volume Hits New Lows
In a troubling sign for Shiba Inu, trading volume has dropped to its lowest levels of the year, indicating a significant decline in market activity. Current data reveals that SHIB is experiencing nearly nonexistent trading, which suggests a lack of confidence among both buyers and sellers. This downturn in volume stands in stark contrast to prior periods when SHIB maintained at least moderate participation, even during market pullbacks.
Low volume is not inherently negative, but in SHIB’s case, it raises concerns about the asset’s future performance. The drastic decline in trading activity suggests that SHIB may be losing attention among investors rather than preparing for a substantial price movement.
Dogecoin Poised for Potential Breakout
Dogecoin is currently trading within a range defined by its lower Bollinger Band at $0.1226 and its upper band at $0.1554. This range indicates a volatility potential of approximately 30%. If market dynamics align favorably, DOGE could see a rally that pushes its price beyond $0.16.
In the past 24 hours, Dogecoin’s price has increased from a low of $0.1207 to $0.1285, suggesting that it may be entering a bullish phase. Trading volume for DOGE has also surged by 5.39% to $1.38 billion, as renewed investor interest contributes to the overall recovery of the cryptocurrency market, which has risen by 1.79% in the last day.
As the crypto landscape continues to evolve, the shifts in sentiment, trading volume, and price movements highlight the dynamic nature of the market. Investors are advised to remain vigilant and consider these trends when making trading decisions.