Even the biggest names in the industry are being affected by the raging cryptocurrency market. Major assets have seen massive drops in value over the last day, wiping out billions of dollars in market value, and casting a bleak short-term picture for digital assets.
Market leaders in red
Bitcoin, the market leader, fell more than 1.2% on the day to about $110,500. According to the chart, Bitcoin is having difficulty maintaining its position above the crucial 200-day moving average, and a bounce attempt at about $112,000 has not given rise to optimism. The volume is dropping, the momentum is weak, and the RSI is still in neutral territory. If Bitcoin can’t recover $114,000 to $115,000 quickly, the next leg lower might retest the $104K support level.
Ethereum is in even worse shape, dropping over 3% to $4,323. For the first time since its July rally, ETH is now moving sideways with lower highs, a classic reversal signal, breaking the wave-like rhythm that propelled it higher. A deeper decline could undo gains made since midsummer if it falls below $4,200, as the next strong support is located close to $4,000.
XRP's plunge
XRP is down 1.1% to $2.081, continuing its downward trend. With the price trapped beneath important moving averages, the chart displays a steady downward trend. The inability of XRP to hold the $3 mark makes recovery more challenging, with bulls viewing $2.50 as the make-or-break level.
Even Shiba Inu's are affected by the slaughter. The meme coin is currently stuck in a narrowing triangle pattern, trading close to $0.0000122. Given that BitMEX recently announced that SHIB’s derivative would be delisted due to low interest, volatility is set to spike, most likely in a negative direction, as volumes decline.
Solana isn't attractive
Additionally, Solana (SOL) is collapsing under the strain, dropping 2.5 percent to $203. On its daily chart, a lower high has developed, which could signal the end of its upward trend. The bearish case for a return to $175 gets stronger if SOL is unable to hold $196.
Overall, the message is clear: investors are removing risk from the equation. The market is not showing any immediate signs of recovery, as volume is drying up and charts are aligning in bearish setups. The cryptocurrency market might be moving further into correction territory unless a significant catalyst appears.
