Crypto Market Slumps as Bitcoin, Ethereum, XRP Fall

Key Moments

Market Overview

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) extended their declines on Friday, continuing the corrective move that has dominated the week. Over the period, BTC, ETH, and XRP posted losses of nearly 6%, 3%, and 5%, respectively. BTC is moving closer to its November trough near $80,000, ETH has fallen below $2,800 under mounting downside pressure, and XRP has retreated to levels last seen in mid-October, underscoring broader weakness across the cryptocurrency complex.

Bitcoin Slides Toward November Lows

Bitcoin began the week with gains but lost momentum midweek. On Wednesday, BTC was unable to secure a daily close above the upper boundary of a horizontal range at $90,000. The failure at that level was followed by a 5.23% pullback on Thursday, which pushed the price below the lower boundary of that consolidation at $85,569. By Friday, BTC remained under pressure, trading near $82,000 and extending its correction.

If the current downtrend persists, BTC could move toward the November low at $80,600. A clear daily close beneath that level could open the door to further downside toward the April 7 low – identified as the 2025 yearly low – at $74,508.

Technical indicators are reinforcing the negative backdrop. On the daily chart, the Relative Strength Index (RSI) is at 29, below the commonly watched oversold threshold of 30, pointing to pronounced bearish momentum. The Moving Average Convergence Divergence (MACD) indicator registered a bearish crossover on January 20, and that signal remains in place, with expanding red histogram bars below the neutral line that add to the pessimistic outlook.

On the upside, any rebound in BTC could target the previously broken lower boundary of the consolidation at $85,569. This zone also aligns with the 78.6% Fibonacci retracement level, calculated from the April 7 low of $74,508 to the October 6 all-time high at $126,199.

Ethereum Breaks Below Critical Fibonacci Support

Ethereum started the week with a recovery, gaining 7.62% by Tuesday and partially retracing the prior week’s sharp 14.22% decline. That rebound stalled on Wednesday when ETH failed to overcome daily resistance at $3,017. The token then fell 6.25% on Thursday, and by Friday it was trading below a key support area at $2,749.

A daily close beneath the 61.8% Fibonacci retracement level at $2,749 would increase the probability of a move lower toward the November 21 low at $2,623. A breakdown below $2,623 could pave the way for a deeper slide toward the psychologically important $2,000 mark.

Ethereum’s daily RSI and MACD indicators are aligned with Bitcoin’s, both signaling pronounced bearish momentum and reinforcing the downside bias.

If market conditions improve and ETH stages a recovery, price action could once again test the daily resistance level at $3,017.

XRP Hits Multi-Month Low as Correction Accelerates

XRP has also come under sustained selling pressure. On Wednesday, the token was unable to close above daily resistance at $1.96. The subsequent session saw a 5.42% decline, with XRP ending Thursday below daily support at $1.83. As of Friday, XRP is trading at $1.75, marking its lowest level since mid-October.

Should the downward trajectory persist, XRP could decline toward the lower boundary of a falling wedge pattern, which is currently located around $1.50.

Momentum indicators for XRP are sending similarly negative signals to those seen in BTC and ETH. Both the RSI and MACD are indicating a bearish setup and point to continued downside risk.

If XRP manages to rebound, price could revisit the daily level at $1.83, which now represents an initial resistance zone.

Key Cryptocurrency Metrics Explained

Circulating Supply

The total number of tokens that can ever be created for a cryptocurrency is determined by its developer or creator. This limit is enforced by the blockchain’s algorithm, which also governs how many tokens can be generated through mechanisms such as mining, staking, or other issuance methods. Circulating supply can decrease over time through processes like token burning or by accidentally sending assets to incompatible blockchain addresses.

Market Capitalization

Market capitalization is calculated by multiplying an asset’s circulating supply by its current market price.

Trading Volume

Trading volume measures how many tokens of a specific asset have been exchanged between buyers and sellers over a defined period, such as 24 hours. It is often used to assess market sentiment and liquidity, combining volumes from both centralized and decentralized exchanges. Rising trading volume typically reflects stronger demand, as more participants are actively buying and selling the cryptocurrency.

Funding Rate

Funding rates are a mechanism used to align the price of perpetual futures contracts with spot market prices. Exchanges implement periodic payments between traders to keep futures prices close to an index price.

When the funding rate is positive, the perpetual contract trades above the mark price. In this scenario, traders who are long pay funding to traders who are short. Conversely, a negative funding rate indicates that perpetual contracts are trading below the mark price, so traders with short positions pay funding to those holding long positions.