Hyperliquid (HYPE) Nears All-Time High, Shiba Inu (SHIB) Faces Strong Downside Volume, Toncoin (TON) Returns to $2: Crypto Market Review

Pressure on Shiba Inu eases

After failing to sustain its recent breakout attempt and increasing sell-side volume, Shiba Inu is under intense selling pressure, with technical indicators and volume structure now leaning more and more bearish. While some segments of the larger cryptocurrency market are still rising, SHIB is still stuck in a protracted downward trend that hasn't shown any clear indications of turning around.

The rejection from the ascending wedge structure that had been forming since March is the most worrisome development. SHIB made a brief attempt to break above declining resistance, but sellers quickly overpowered the move, pushing the price back below the important short-term moving averages and trend support. The unsuccessful breakout now risks becoming a traditional bull trap.

SHIB/USDT Chart by TradingView

The situation is made worse by volume behavior. Participation in downside sessions is starting to outpace that of recovery attempts, indicating distribution rather than accumulation. Because meme assets like SHIB mainly rely on speculative momentum and retail enthusiasm, this distinction is important.

Technically speaking, SHIB is still trading below the 200-day moving average, which continues declining and supports the larger bearish structure. Additionally, the 50-day and 100-day moving averages are compressing above, forming a layered resistance zone that bulls have been unable to recapture on multiple occasions.

The same weakness can be seen in momentum indicators. The RSI is still declining and has rolled over below the neutral zone, indicating a decline in buying interest. SHIB is still trapped in low-conviction consolidation, with a deteriorating structure, in contrast to stronger assets that are currently entering phases of expansion.

The recent local lows in the 0.00000550 region are currently close to the important support area. If that level is not held, traders may abandon their positions and short-term holders may start to exit, causing SHIB to enter another phase of accelerated decline. On the upside, before any significant recovery narrative is credible, bulls would need to reclaim the wedge breakdown zone and push back above the 100-day moving average.

Toncoin recovers

Following a violent breakout from protracted consolidation, Toncoin has experienced one of its strongest short-term recoveries in months, regaining the psychological $2 level. The move represents a significant change in momentum for TON, which has been stuck in a grinding downtrend for the majority of the last year due to dwindling participation and frequent rejection from important resistance zones.

The actual breakout was violent. Before sellers imposed a cooldown phase, TON exploded from the $1.30 area toward almost $3. Buyers have so far protected the majority of gains despite the retracement, which has prevented the asset from completely collapsing back into its previous range and instead allowed it to stabilize around $2. This distinction is important because, when momentum is weak, failed breakout rallies typically retrace much deeper.

For the first time in a long time, TON is technically trading back above its 50-, 100-, and 200-day moving averages. The most significant structural support level on the chart is now essentially the 200-day moving average in the $1.75-$1.80 range. Bulls maintain medium-term control as long as TON stays above that range.

Additionally, volume shows that this was not a singular spike in liquidity. During the breakout phase, trading activity spiked sharply, indicating widespread participation as opposed to a thinly traded move. Despite the current consolidation, volume remains high, indicating that the market is actively repositioning rather than giving up on the asset.

Momentum indicators briefly entered overheated territory before starting to cool. By reducing the risk of immediate exhaustion, the RSI has already decreased from extreme levels, improving the structure. The market now seems to be moving from panic buying into a phase of decision-making, where traders decide whether TON should be repriced for an extended period of time or if there was only a brief short squeeze.

The $2.20-$2.30 area, where past breakdown structures and historical resistance overlap, presents the largest obstacle. The path toward $2.70 and possibly the recent spike high near $3 would be reopened by a clean breakout above that range. A wider correction toward the moving average cluster around $1.65-$1.75 could result from failing to hold above $1.90, which would seriously undermine the recovery narrative.