XRP Signals Potential Turn Based on Derivatives Data

What to Know:

• Ethereum fell by 7%, losing support at $3,000, signaling potential further declines.
• The broader crypto market is experiencing a downturn, with most altcoins in the red.
• XRP’s struggle to maintain support levels could impact liquidity and investor confidence in Ripple’s ecosystem.

This week saw a significant downturn in the cryptocurrency market, with several major altcoins experiencing notable losses. Ethereum’s drop below a key support level has set a bearish tone, influencing the performance of other cryptocurrencies. This analysis examines the current state of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid, providing a technical outlook for institutional investors.

Ethereum (ETH) Faces Bearish Pressure

Ethereum experienced a 7% decline this week, breaching the $3,000 support level. This breakdown suggests that sellers are gaining control, potentially driving the price lower. The next critical support level to watch is around $2,400, though a lower low below $2,600 must occur first to validate this move. The inability of buyers to regain control indicates a continued bearish momentum in the near term.

Ripple (XRP) Tests Key Support

Ripple’s XRP recorded an 8% loss this week, establishing a lower low and intensifying selling pressure after losing support at $1.76. The price is now approaching a significant support level at $1.6, which may trigger a bounce. However, any relief rally is likely to face resistance around the $2 mark. The current downtrend puts XRP in a precarious position, potentially leading to further declines toward $1.6 or lower.

Cardano (ADA) Plummets Amid Selloff

Cardano’s ADA experienced a sharp 10% drop this week, driven by a lack of buying interest. The price has fallen to $0.33 and could soon dip below $0.30. The most critical support level lies at $0.27, a level last seen in July 2024. This decline effectively erases recent gains and places Cardano in a prolonged bear market. Without a resurgence of buyer support, the downtrend is likely to persist.

Binance Coin (BNB) Faces Resistance

Binance Coin (BNB) was rejected at the $900 resistance level, resulting in a 5% loss for the week. The failure to break higher suggests that sellers remain in control, with a potential move toward the $800 support level. A breach of the $800 support could lead to a further decline toward $700, which may serve as a reversal point based on historical price action. Despite attempts by buyers, BNB remains in a downtrend, with bearish momentum increasing.

Hyperliquid (HYPE) Shows Volatility

Hyperliquid (HYPE) experienced a volatile week, initially surging by 68% before retracing to close with a 35% gain. This performance is notable given the widespread downturn in the altcoin market. The price spike occurred after a reduction in selling pressure from whales, encouraging buyers to re-enter the market. However, the pump resulted in a lower high, failing to reclaim $35 as support. Overcoming this level is crucial for a bullish reversal.

Market Outlook

The cryptocurrency market is currently exhibiting bearish tendencies, with major altcoins facing significant selling pressure. Ethereum’s break below $3,000 has set a negative tone, influencing the performance of other cryptocurrencies. Investors should closely monitor key support levels for potential buying opportunities, while remaining cautious amid the prevailing downtrend. The coming weeks will be critical in determining whether these assets can establish a bottom and begin a recovery.

Related: XRP Price Forecast Debunked by Ripple CTO

Source: Original article