XRP and Bitcoin Hover at Critical Support as Nasdaq Shows Warning Signs
Both XRP and Bitcoin are trading near make-or-break levels, while Nasdaq’s recent price action signals potential weakness for tech and crypto markets.
Payments-focused XRP has dropped over 6% this week, testing the $2 support — a level that has historically acted as a bear fatigue zone since December. Weekly candle wicks suggest selling pressure often eases here. However, a break below $2 could trigger a larger selloff as holders exit. For XRP to regain bullish momentum, it must overcome the descending trendline connecting lower highs since July, currently near $2.50.
Meanwhile, Bitcoin is testing one of its most critical support clusters in years: the bullish trendline connecting higher lows through 2023–2024, the 100-week simple moving average (SMA), and the 38.2% Fibonacci retracement from the 2022 bear-market low to the recent record high of just over $126,000. A breakdown here would shift focus to April’s swing low near $74,500, followed by the 2021 bull-market peak just under $70,000. Some traders are already preparing for sub-$80,000 BTC in early 2026.
On the upside, Bitcoin bulls need to reclaim the 50-week SMA at around $102,252 to maintain the broader bull case — a challenge given Nasdaq’s cautionary signals. The Nasdaq recently formed a “hanging man” candlestick on its monthly chart, signaling emerging selling pressure and potential trend exhaustion. The pattern features a small real body near the top, a long lower shadow, and little or no upper shadow. Appearing at record highs, it often warns of a pause or reversal, and Bitcoin historically tracks tech stocks closely.
With XRP and Bitcoin precariously positioned at key support levels, and Nasdaq signaling possible weakness, traders face a tense setup. The widely anticipated Santa rally in tech stocks and cryptocurrencies may be at risk this year.
