Crypto Majors Slide as Technical Signals Point to Deeper Downside

Key Moments

Bitcoin (BTC) has retreated nearly 7% from a key trendline rejection and is testing support at $85,569, with momentum indicators turning bearish.
Ethereum (ETH) failed to reclaim its 50-day EMA at $3,249, dropping 11% by Tuesday and trading below $2,946 as bearish signals strengthen.
XRP (XRP) has closed below a critical $1.96 support level, with bears targeting the next downside level at $1.77 amid a sustained bearish MACD crossover.

Bitcoin Under Pressure as Key Support Comes Into Focus

Bitcoin (BTC) continues to struggle as the broader cryptocurrency market remains in a corrective phase into midweek. Price action for BTC, along with other major assets, is signaling a potential extension of the ongoing downturn as momentum indicators increasingly favor the bears.

On Friday, Bitcoin was rejected from a descending trendline drawn by connecting multiple highs since early October. Since that rejection, BTC has fallen nearly 7%, revisiting the $85,569 support level on Monday. After touching that level, the coin staged a modest rebound on Tuesday. As of the time of writing on Wednesday, BTC is trading around $87,300.

If the correction resumes and BTC posts a daily close below $85,569, which coincides with the 78.6% Fibonacci retracement level, the move could open the door for a deeper slide toward the psychologically important $80,000 area.

The Relative Strength Index (RSI) on the daily chart stands at 40, below the neutral 50 mark, highlighting growing downside momentum. In addition, the Moving Average Convergence Divergence (MACD) lines are converging, and a shift to a bearish crossover would further reinforce the negative technical backdrop.

Should buyers regain control, however, BTC could attempt to push higher toward the 61.8% Fibonacci retracement level at $94,253.

Bitcoin Technical Levels	Value
Current area (Wednesday)	around $87,300
Key support	$85,569 (78.6% Fibonacci retracement)
Downside target if support fails	Psychological $80,000 level
Upside target on recovery	$94,253 (61.8% Fibonacci retracement)
RSI (daily)	40

Ethereum Extends Decline After Rejection at 50-Day EMA

Ethereum (ETH) is also showing signs of weakening momentum. The asset failed to secure a daily close above its 50-day Exponential Moving Average (EMA) at $3,249 on December 10, triggering a sharper move to the downside.

From that failed test through Tuesday, ETH dropped 11%. As of Wednesday, the token continues to decline and is trading below $2,946, reflecting sustained selling pressure.

If the correction persists, ETH could slide further toward the next identified support level at $2,749.

On the daily chart, the RSI is at 41, below the 50 neutral threshold, pointing to increasing bearish momentum. At the same time, the MACD is showing a bearish crossover on Wednesday, adding confirmation to the negative technical outlook.

In a recovery scenario, Ethereum could attempt to reclaim ground toward the 50-day EMA, currently located at $3,249.

Ethereum Technical Levels	Value
Failed resistance	$3,249 (50-day EMA)
Recent decline	11% drop by Tuesday
Current trade area (Wednesday)	below $2,946
Next support	$2,749
RSI (daily)	41

XRP Slips Below Key Support as Bears Target Lower Levels

XRP has also been caught in the broader market correction, with sellers pressing prices below a critical support zone.

For the second consecutive week, XRP price fell by 3.22%, retesting important daily support at $1.96 on Sunday. The downside pressure continued into Monday, when XRP extended its correction and closed below this support level. A modest rebound followed on Tuesday, and as of Wednesday, XRP is trading around $1.91.

If selling resumes, XRP could extend its pullback toward the next daily support area at $1.77.

The RSI on the daily timeframe is at 37, under the neutral 50 mark, signaling that bearish momentum is strengthening. The MACD indicator registered a bearish crossover on Sunday, and that signal remains in place, reinforcing the downside thesis.

On the upside, if XRP manages to recover, it could aim for a move back toward daily resistance at $1.96.

XRP Technical Levels	Value
Recent weekly decline	3.22%
Former key support / current resistance	$1.96
Current area (Wednesday)	around $1.91
Next support	$1.77
RSI (daily)	37

Key On-Chain and Market Metrics Explained

Circulating Supply

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market Capitalization

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.

Trading Volume

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding Rate

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.