After weeks of relentless selling pressure, Shiba Inu is making another attempt to stage a comeback.
Recent price action indicates that SHIB might be attempting to create a local bottom close to a crucial support zone, even though the overall trend remains negative.
The meme-inspired cryptocurrency has found support along an ascending trendline that has been forming since March, and it is currently trading around the $0.0000055 level.
The most recent response is especially significant for traders looking for signs of stabilization, as this trendline has already provided a solid basis for multiple rebounds.
Technically, SHIB is still in a challenging situation. Bears remain in control of the broader market structure, with the asset trading below its 50-, 100-, and 200-day moving averages. A recent rejection near the 100-day moving average triggered another wave of selling that drove SHIB back toward support, further highlighting the significance of overhead resistance.
Nevertheless, there are reasons for cautious optimism. SHIB is approaching oversold territory, with the Relative Strength Index having dropped to approximately 37. Historically, such conditions have frequently preceded relief rallies, particularly when coinciding with strong support levels. Volume has also remained comparatively steady throughout the decline, suggesting that panic selling has not intensified.
The rising support line near current prices remains the most critical level to watch. Should this defense hold, SHIB could attempt another move toward the 50-day and 100-day moving averages. While such a recovery would not necessarily halt the long-term decline, it would demonstrate that buyers are still willing to defend the asset despite broader market weakness.
On a fundamental level, SHIB continues to benefit from declining exchange reserves and growing discussions around supply reduction. If market sentiment improves, these factors — combined with technical support — could underpin another recovery attempt. For now, SHIB remains in a cautious but potentially advantageous position. With oversold conditions emerging and support holding once more, traders may soon find out whether this latest rebound attempt has enough strength to develop into something more meaningful.
Bitcoin's Decline Isn't Over Yet
Bitcoin has entered a region that many traders associate with short-term exhaustion as the market's leading cryptocurrency approaches oversold conditions following its most recent correction. After peaking above $82,000, Bitcoin has been steadily declining, falling below several significant moving averages and erasing a substantial portion of the momentum built during the prior rally. Investors are now questioning whether a deeper decline may be ahead.
Technically, Bitcoin is currently trading near $74,000 and below its 50-, 100-, and 200-day moving averages. A recent breakdown beneath the upward trendline that had sustained the advance from April lows further weakened the chart structure and shifted momentum back in favor of sellers.
Despite the bearish appearance, one metric is beginning to attract attention: the Relative Strength Index. The RSI has dropped to approximately 38 — its lowest level in weeks — a reading frequently associated with oversold conditions. While this does not guarantee an immediate reversal, it does suggest that selling pressure may be intensifying to a degree that could attract buyers.
Historically, Bitcoin has drawn buyers when momentum indicators approach oversold levels, particularly during longer bull market cycles. Previous corrections have often produced relief rallies once bargain hunters step in and sellers grow fatigued.
A key support zone currently sits between $72,000 and $74,000, and there are already signs that Bitcoin is stabilizing, with buyers preventing a more severe collapse. If support holds, the market may attempt to rebound toward the 50-day moving average near $76,000 and eventually the 100-day moving average above $77,000. Trading volume remains comparatively muted compared to the intense activity seen in earlier stages of the cycle, which may indicate that institutional participants are waiting for more definitive confirmation before re-entering.
The current structure presents investors with a mix of opportunity and risk. Although Bitcoin's technical setup has weakened considerably, oversold conditions suggest that downward momentum may be slowing. Whether the asset is setting up for a relief bounce or simply pausing before another leg lower will likely become clearer over the next few trading sessions.
Near Protocol Reaches Its First Support Test
Following one of the most notable rallies in the altcoin market in recent weeks, Near Protocol appears to be undergoing its first significant support test. After surging from below $1.60 to nearly $2.90 within a matter of days, NEAR has entered a consolidation phase as buyers work to establish a new support base.
NEAR is currently stabilizing in the $2.20–$2.30 range following the recent pullback. While the correction may appear substantial on shorter timeframes, it remains relatively modest compared to the scale of the preceding breakout. Such retracements after parabolic moves are often considered healthy, allowing overheated momentum to cool before the next directional move takes shape.
From a technical standpoint, NEAR remains in a strong position. The asset is still trading comfortably above its 50-, 100-, and 200-day moving averages, all of which have begun to trend upward after months of declines. More significantly, the recent rally pushed NEAR above the long-term 200-day moving average — a level widely used to distinguish between bullish and bearish market conditions.
Volume continues to run higher than levels seen in April and the first part of May, indicating that investor interest has not faded despite the pullback. The recent decline appears to have been driven primarily by profit-taking rather than panic selling, which is generally considered a positive sign for trend continuation.
The Relative Strength Index has retreated from overbought territory but remains above 60, reflecting continued bullish momentum even after the correction. This reset gives NEAR additional room to climb without immediately encountering excessive momentum readings.
The $2.20 support zone is the critical level to monitor at present. If buyers continue to defend this area, NEAR could establish a higher low and set up for another run at recent highs around $2.80–$2.90. A successful support test would confirm that the asset's breakout may represent the beginning of a more significant trend reversal, rather than merely a short-lived spike.
Why it matters
For SHIB, the ascending trendline dating from March is acting as a repeated technical anchor — its continued relevance across multiple rebounds means a confirmed break below it would carry more weight than a typical support failure.
Bitcoin's RSI reading near 38 places it in territory that has historically attracted bargain buyers during bull-market corrections, but the simultaneous breakdown below a key ascending trendline complicates that signal, making the $72,000–$74,000 zone a genuinely contested battleground rather than a clear entry point.
NEAR's position above all three major moving averages — including the 200-day — after months of those averages trending downward represents a structural shift in chart conditions, not just a short-term price spike, which is why the current pullback's character (profit-taking vs. panic) matters to how traders interpret the trend.
