The crypto market is undergoing a sharp correction as leading assets such as XRP, Bitcoin (BTC), and Ethereum (ETH) struggle to maintain key support levels. The recent decline not only reflects increased volatility but also raises questions about the market outlook in the near term.
XRP Slides Below $2
XRP has seen a sharp decline below the psychological $2 level, currently trading around $2.02, down nearly 7% over the past 24 hours. This is the second time this month that XRP has fallen below this level, raising concerns about a weakening of the uptrend.
While it is possible that XRP is correcting to fill a gap in price action, this recent decline is more indicative of heavy selling pressure than a gradual pullback. The loss of support from the 50-day EMA has left XRP vulnerable to further sell-offs. If it continues to decline, XRP could hit the next support level at $1.79.
In the event that XRP quickly recovers to $2.20, the decline could be just a shakeout before a bounce to $2.50. However, if the downtrend continues, the market could see deeper losses before finding a solid bottom.
Bitcoin Ends Weakest Bull Run in History
The recent collapse of Bitcoin has marked the end of one of the weakest bull runs since the coin’s inception. Bitcoin is currently trading at $79,168 after falling 6.46% in a day, falling below the 200-day EMA - a key support level in previous bull cycles.
The drop has shaken market sentiment, with many traders fearing a prolonged bear market. If Bitcoin fails to quickly recover above $80,000, the downtrend could resume with the next key support levels at $75,000 and even $70,000 if selling pressure increases.
However, Bitcoin still has a chance to resume bullish momentum if it can quickly clear $85,000 and reclaim the 200-day EMA. If that happens, Bitcoin could avoid a more serious correction and consolidate its position in the market.
Ethereum Struggling to Hold $2,000
Ethereum is currently clinging to the key $2,000 support level after a sharp 8.44% drop on the day, trading around $2,110. If Ethereum loses this level, selling pressure could intensify, pushing the price down to $1,900 or even $1,750.
The Ethereum ecosystem has been in turmoil in recent months, with liquidity dwindling and investor confidence dropping significantly. If ETH can stay above $2,000, the market could see a recovery to $2,200 and further to $2,500.
However, if selling pressure continues to increase and ETH falls below $2,000, this could trigger a series of liquidations, exacerbating the bearish sentiment. Ethereum is currently at a critical juncture, and the price action in the coming days will determine the short-term trend of the asset.
Market Facing High Volatility
With high volatility in the market, traders need to be cautious of bearish signals from XRP, Bitcoin, and Ethereum. If important support levels continue to be broken, the possibility of a deeper correction is very high. However, the market can still reverse if the buying force returns strongly enough to push the price back above important levels.
In the coming time, the cryptocurrency market may continue to face strong fluctuations, requiring investors to closely monitor signals from the market and adjust their strategies accordingly.
