- Bitcoin, ethereum, and XRP are facing growing downside risks as traders reduce exposure amid weak technical signals.
- All three cryptocurrencies hover near key support levels, with limited signs of recovery in the short term.
The crypto market continues to face selling pressure as traders cut exposure amid growing uncertainty. Bitcoin, ethereum, and XRP are all testing key support levels, with technical indicators pointing toward further downside risk in the short term.
Bitcoin Tests Critical Support Range
BTC has fallen for the third straight day, trading near $110,500 at the time of writing. The decline follows a massive deleveraging event that triggered widespread liquidations across the crypto market. BTC now hovers between the $108,000 and $110,000 range—an important support zone defined by the 200-day Exponential Moving Average (EMA).
ETF data from SoSoValue shows a mixed institutional sentiment, with Bitcoin ETFs registering $104 million in outflows on Wednesday after an inflow of $103 million on Tuesday. Analysts note that steady inflows are crucial for sustaining a bullish trend and helping BTC retest its all-time high of $126,199. Until the price reclaims the 100-day EMA at $113,402 and the 50-day EMA at $115,161, traders remain cautious.
Ethereum Faces Weak Technical Setup
Ethereum (ETH) trades slightly above the 100-day EMA around $3,978 but continues to show signs of weakness. The Relative Strength Index (RSI) sits in bearish territory, indicating mounting selling pressure. The MACD indicator also maintains a sell signal, confirming the short-term bearish bias.
Institutional interest in ethereum ETFs has dropped recently, with inflows of $169 million on Wednesday—down from $236 million a day earlier. If selling persists, ETH could slide to test support at $3,700 before any potential recovery.
XRP Bulls Defend $2.40 as Risks Grow
XRP’s bearish pressure is intensifying, with bulls struggling to defend the $2.40 support zone. Open interest in XRP futures has declined to $4.05 billion, less than half of the $9.09 billion seen before last week’s deleveraging event, reflecting waning trader confidence.
If the $2.40 level fails to hold, XRP could drop toward the next support at $2.22. However, a rebound above the 200-day EMA at $2.62 may restore bullish strength and pave the way for a move toward $3.00.
Bitcoin, ethereum, and XRP are all grappling with mounting downside risks as traders scale back exposure. Until strong inflows return and technical indicators shift bullish, the broader crypto market is likely to remain under pressure.
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