Crypto Market Tumbles: ETH, XRP, SOL, ADA See Significant Weekly Losses Amidst Broader Sell-off
Major cryptocurrencies, including Ether (ETH), XRP, Solana (SOL), and Cardano (ADA), have experienced significant price drops ranging from 8% to 16% over the past week. This downturn follows a broader market sell-off, with Bitcoin also breaking below key psychological levels, leading to substantial liquidations of leveraged positions.
Key Takeaways
- Major cryptocurrencies like ETH, XRP, SOL, and ADA have fallen between 8% and 16% in the last week.
- Bitcoin has dropped below the $98,000 mark, reaching its lowest point since May.
- Over $880 million in bullish crypto positions were liquidated in a 24-hour period.
- Macroeconomic factors, including cooling economic activity in China and fading hopes for a December Federal Reserve rate cut, are contributing to the market's risk-off sentiment.
- Technical analysis suggests further downside potential for Bitcoin if key support levels are breached.
Market Downturn and Liquidations
The cryptocurrency market has seen a sharp decline, with Bitcoin (BTC) slipping below the $98,000 level, a price point not seen since May. This drop has dragged major altcoins down with it. Ether (ETH) saw a weekly decline of 12%, trading around $3,182. XRP experienced an 8.8% weekly drop, while Solana (SOL) was among the hardest hit, plummeting 16.5% to $140. Cardano (ADA) also saw a significant fall.
The market's weakness has led to substantial liquidations. Over $880 million in leveraged long positions were wiped out in a single 24-hour period, with over $1 billion in total leveraged crypto positions liquidated. This indicates a significant deleveraging event as traders unwound optimistic bets.
Macroeconomic Headwinds Fuel Sell-off
Several macroeconomic factors are contributing to the current risk-off sentiment in the crypto market. Data showing a slowdown in China's economic activity, with industrial production cooling and fixed-asset investment contracting, has impacted Asian equities and subsequently spilled over into digital assets.
Furthermore, cautious remarks from Federal Reserve officials have diminished expectations for a December rate cut. Money markets now price the odds of a cut below 50%, a sharp decrease from earlier in the week. This shift, coupled with global equity market weakness, has prompted traders to reassess their year-end positioning.
Technical Outlook and Future Prospects
Technically, Bitcoin's break below the monthly mid-range at $100,266 has cleared a key liquidity shelf, exposing it to further declines. Near-term support is identified between $93,000 and $95,000. A breach of this level could lead to a deeper test near the $89,600 liquidity gap. On the upside, resistance is expected at $100,200 and $107,300.
Market liquidity continues to trend lower, with no clear stabilization in sight. Analysts suggest that subdued trading is likely to persist unless a significant macro catalyst emerges. The market appears to be bracing for the possibility of the Fed pausing rate cuts in December, awaiting further economic data. The recent price action has erased Bitcoin's earlier gains for the year, highlighting the volatility and sensitivity of the crypto market to broader economic and geopolitical events.