This Bitcoin (BTC) Fakeout Can Destroy $100,000, Will Dogecoin (DOGE) Add Zero? XRP Getting Squeezed

The recovery celebration that covered the cryptocurrency market quickly turned into nothingness as the major moves we witnessed yesterday turned into fakeouts that might lead to essentially nothing.

Bitcoin’s recovery chances

As the cryptocurrency hovers perilously near a possible bull trap, traders are on edge due to Bitcoin’s recent recovery. Right at a crucial technical threshold, the biggest cryptocurrency in the world is displaying signs of exhaustion after bouncing back toward $115,000. This fakeout could have serious repercussions for the eagerly awaited run toward $100,000+.

The 200-day moving average, which has historically been the boundary between bullish continuation and reversal, is now difficult for Bitcoin to maintain above despite the fact that it has risen above the 50-day moving average on the daily chart. After several unsuccessful attempts to break higher, price action shows hesitancy, but the RSI near 53 indicates neutrality, indicating neither bulls nor bears have complete control. Additionally, volume presents an unsettling image.

The buying pressure is still weak in comparison to earlier bullish expansions, even with the price push from the $108,000 region. The pattern may turn into a classic fakeout if Bitcoin is unable to recover and close decisively above $116,000-$118,000. This would trap late buyers and cause a correction back to the support zones of $110,000 or even $105,000. A failed breakout of this type is especially risky at this point in the market cycle.

ETF inflows and improving macro sentiment have been major factors in Bitcoin’s upward momentum since mid-October, but technical fatigue may now be catching up. In the event that the bullish narrative falters, liquidations may increase volatility on the downside.

The fate of Bitcoin in the near future hinges on its capacity to hold above the short-term moving averages and decisively retake the $120,000 mark. If not, this rally runs the risk of being remembered as the fakeout that ruined the psychological route to six figures rather than the beginning of the next leg higher.

Dogecoin’s tricky position

Once again, Dogecoin finds itself at a risky technical juncture. Following a brief recovery that saw the price rise back above $0.20, the meme coin is currently up against increasing resistance from all of the major moving averages. If buyers are unable to hold the line, this situation could quickly turn into another big decline.

DOGE is having trouble below the 100-day EMA and the 200-day EMA on the daily chart. Both of these levels have turned into resistance following the sharp correction in October. The coin has stalled near $0.21, forming what appears to be a bearish continuation pattern after briefly dipping toward $0.17 before stabilizing.

This weakness is further supported by the RSI hovering around 45, which indicates that bulls are barely keeping the asset afloat. The consequences could be dire if DOGE is unable to overcome the resistance zone between $0.22 and $0.23. A bearish flag formation would be confirmed by a breakdown below $0.19, which might push the price back to the $0.16-$0.15 range and essentially erase the majority of its 2025 recovery.

Not only would this add a zero to Dogecoin’s price in historical terms, but it would also signal a further decline in investor trust in the token’s potential for speculation. Dogecoin’s technical resilience is, at best, tenuous due to its dependence on whale accumulation and social sentiment. Without a clear catalyst, such as a resurgence of interest in meme coins across the board or well-known endorsements, it is difficult to see DOGE maintaining its upward trajectory.

Simply put, Dogecoin is in a precarious situation. The asset’s next significant move could be painful if bulls are unable to regain control quickly. Prices could drop quickly enough to make the dreaded extra zero a sobering reality for long-term holders.

XRP under pressure

As price action tightens between important exponential moving averages (EMAs), XRP is entering a crucial technical phase. This is a classic volatility squeeze pattern that could soon blow up in either direction.

The asset is currently trading close to $2.67 and is displaying consolidation after a tumultuous few weeks that saw both a breakdown below the 200-day EMA (black line) and a quick recovery above it. This dynamic is rarely observed in the absence of a clear follow-up move.

The 50-day, 100-day and 200-day EMAs’ convergence is currently the most noticeable aspect of XRP’s chart. By essentially keeping the price in a narrowing range between $2.60 and $2.78, this triple-layer compression is generating increasing pressure that will ultimately necessitate a resolution. Such EMA squeezes have historically caused XRP to react with high-magnitude breakouts, which frequently dictate the asset’s midterm direction for the coming weeks or months.

Momentum-wise, the RSI close to 55 indicates a neutral but improving bias, and daily trading volume indicates a slow reaccumulation after the sell-off in early October. The next targets for XRP would probably appear around $3.00 and $3.20, where previous descending trendlines intersect with volume peaks, if it were to close above the $2.78 resistance.

On the other hand, a breakdown below $2.55 might lead to fresh selling pressure and another test of the $2.30-$2.40 range. The takeaway for investors is straightforward: volatility is set to return, and XRP is coiling tightly. It will be decided in the next few sessions whether XRP enters a new uptrend or experiences another rejection from its multimonth descending structure, as the EMAs serve as both dynamic support and resistance.

Source