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For the second time in February, the asset has broken through this psychological support level, as XRP has fallen below the crucial $2.00 mark. XRP is currently trading at $2.02, down almost 7% over the past day due to increased selling pressure and heightened volatility. This most recent decline might be an instance of XRP filling the gap in its price action, which happens frequently when an asset returns to prior support areas before making another move attempt.
But the way XRP fell indicates otherwise — it was a steep decline more like a knife down event brought on by aggressive selling rather than a gradual retracement. After XRP was unable to maintain its hold above important moving averages such as the 50-day EMA, it broke below $2.00.
The market's general pessimism has accelerated XRP's decline and brought it closer to its next significant support level of $1.79. Should XRP swiftly recover $2.20, this decline might be interpreted as a brief sweep of liquidity, opening the door for a possible recovery back toward $2.50.
What XRP does next will be important because of the rising volatility. A reversal may occur if buyers intervene forcefully. But before there is a significant recovery, XRP may experience more losses if the bearish trend persists.
Bitcoin's cycle break
What is now regarded as the weakest bull market in its history has officially come to an end with the recent collapse of Bitcoin. Concerns about a prolonged bearish cycle have been raised by the cryptocurrency's decline below its 200-day EMA loss of the crucial $80,000 support level and erasure of a sizable amount of its prior gains.
Bitcoin fell 6.46% in a single day to $79,168, which is significantly below its long-term moving averages. Given that this level has historically been a reliable support during bullish periods, the breach of the 200-day EMA is an important bearish signal. The market sentiment has drastically changed since it was lost, and many people now fear that the worst is still to come.
Yuri MolchanMuch of Bitcoin's previous explosive rise has been undone by the swift decline, which has cost the market billions of dollars and forced traders into defensive positions. The rapid decline in Bitcoin points to a shift in momentum toward a longer correction and surrender from overly leveraged positions.
Further downward movement is anticipated if Bitcoin is unable to recover the $80,000 mark; the next significant support is located at $75,000. If panic-selling increases, the price may drop as low as $70,000. Before making an effort to regain lost ground, Bitcoin forms a temporary bottom in the neutral case - consolidating between $78,000 and $85,000.
However, it could rekindle bullish momentum and avert a more severe correction if bulls are lucky and if Bitcoin quickly recovers $85,000 and rises above the 200-day EMA. Now that the bull market has been successfully broken, Bitcoin runs the risk of going into a protracted decline unless it can make a sizable comeback. In the upcoming weeks, traders should expect increased volatility.
Ethereum's last support
A crucial $2,000 support level that could decide the asset's short-term destiny is what Ethereum is clinging to. ETH, which is currently trading at $2,110 following a vicious 8.44% daily decline, is under tremendous selling pressure. A clear breakdown below $2,000 would greatly exacerbate the already pessimistic market sentiment.
Ethereum has been steadily leaving the ecosystem over the last few months, which has contributed to its decline. As ETH tries to hold onto important support levels, liquidity has dried up and investor confidence is still declining. Ethereum's last line of defense before a potentially deeper collapse is the $2,000 mark; a drop below it could set the stage for even more volatility.
Alex DovbnyaPanic-selling would probably follow a $2,000 breach, pushing ETH down toward lower support levels of $1,900 or even $1,750. A move like that would worsen the ecosystem's current problems by increasing capital flight from Ethereum-based projects. Ethereum could regain $2,200 and even move toward $2,500 in an effort to make up lost ground if it can hold above $2,000 and perform a bounce.
If ETH falls below $2,000, it would lead to a series of liquidations that would push it down to $1,900, and possibly to $1,750, if selling pressure increases. Ethereum is at a turning point. A short-term recovery might be possible if bulls can defend $2,000. The market decline and additional withdrawals from the already troubled ecosystem could worsen ETH's situation if this crucial level is lost.
Dan Burgin
Vladislav Sopov