The cryptocurrency market is once again at a crossroads, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) showing signs of potential downward corrections.
After months of bullish rallies driven by institutional interest and favourable macroeconomic conditions, market indicators now suggest a weakening momentum.
Key support levels for these major cryptocurrencies are being tested, raising questions about their ability to sustain upward trajectories.
As the market becomes increasingly volatile, the potential for corrections could redefine short-term investor strategies and impact broader market sentiment.
Bitcoin nears critical support amid weakening momentum
Bitcoin, the flagship cryptocurrency, experienced a meteoric rise in recent months, reaching an all-time high of $109,588 last week.
The euphoria has since waned, with BTC recording a modest decline of 2.22% over the weekend.
On Monday, Bitcoin was trading near $100,000—a crucial psychological and technical support level.
Market indicators paint a mixed picture.
The Relative Strength Index (RSI) has fallen below 50, signalling declining bullish momentum, while the Moving Average Convergence Divergence (MACD) suggests a potential bearish crossover.
Should Bitcoin fail to hold above $100,000, a further decline toward $90,000 could materialise.
This level would test the strength of long-term bullish support.
On the other hand, maintaining the $100,000 mark could pave the way for a recovery, potentially revisiting the recent peak.
The broader implications for Bitcoin’s price movements extend to the overall cryptocurrency market, given its dominant position and influence.
Ethereum tests 200-day EMA as bearish signals emerge
Ethereum, the second-largest cryptocurrency by market capitalisation, has also shown signs of weakness.
Last week, ETH found support at its 200-day Exponential Moving Average (EMA) of $3,136, but it has since declined.
As of Monday, Ethereum was trading slightly above this level, with market sentiment tilting towards bearishness.
The RSI for Ethereum currently stands at 42, below the neutral threshold of 50, indicating a loss of bullish momentum.
Additionally, the MACD has confirmed a bearish crossover, suggesting further downside potential.
If Ethereum closes below its 200-day EMA, the next significant support level is $3,000—a psychologically important threshold.
However, if the $3,136 EMA holds firm, Ethereum could regain upward momentum and aim for its immediate resistance at $3,730.
This scenario would require renewed buying pressure, which appears lacking amid current market conditions.
XRP faces trendline test as volatility rises
Ripple’s XRP, known for its utility in cross-border payments, has not been immune to the broader market downturn.
After encountering resistance at $3.40 last week, XRP has retreated and now hovers around $2.99.
The token is approaching its ascending trendline, which has provided reliable support since the start of the year.
Key technical indicators suggest caution. XRP’s RSI has dropped from overbought levels and now sits at 57, signalling reduced buying interest.
Meanwhile, the MACD shows a bearish crossover, aligning with broader market sentiment.
A close below $2.72 could trigger a more substantial correction, with $1.96 emerging as the next significant support level.
Conversely, if XRP maintains its trendline and regains momentum, it could attempt to reclaim the $3.40 resistance.
However, much like Bitcoin and Ethereum, this scenario depends on broader market conditions stabilising.
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