Market Correction Deepens Across Major Cryptos: Watch These Critical Levels

The cryptocurrency market is experiencing intensified selling pressure this week, with Bitcoin, Ethereum, and XRP all facing downward headwinds. Technical weakness is spreading across major digital assets as investors reassess their positions amid a broader market pullback. Momentum indicators are shifting decisively bearish, signaling potential for deeper corrections ahead.

XRP Under Pressure After Breaking Key Support

Ripple (XRP) has suffered consecutive weekly declines, slipping 3.22% as it tests lower support boundaries. The digital asset retested its critical daily support level at $1.96 on Sunday before finally breaking below this crucial threshold early in the week. A minor rebound followed on Tuesday, with XRP trading around $2.04 as of the latest update (UTC+8).

The technical picture remains concerning. The Relative Strength Index (RSI) sits at 37, comfortably below the 50 neutral threshold, confirming sustained bearish pressure. More significantly, the Moving Average Convergence Divergence (MACD) registered a bearish crossover on Sunday—a pattern that remains structurally intact. Should the weakness persist, XRP could accelerate toward the next support layer at $1.77. Conversely, if buying emerges, resistance stands at the previously broken $1.96 level.

Bitcoin’s Correction Risk Intensifies at $87,300 Zone

Bitcoin encountered rejection at its descending trendline (formed by successive peaks since early October) last Friday, triggering a sharp 7% drawdown by Monday. The price retested the $85,569 support—coinciding with the 78.6% Fibonacci retracement—before staging a modest recovery to approximately $87,300 by Wednesday.

Current price action suggests vulnerability. The daily RSI reading of 40 demonstrates strengthening bearish momentum below the neutral 50 level. Meanwhile, MACD lines are narrowing, with a bearish crossover potentially looming. If Bitcoin closes decisively below the $85,569 support barrier, the psychological $80,000 level becomes the next target zone, representing a potential 12% further decline from current levels.

On the upside, should momentum turn positive, Bitcoin could challenge the 61.8% Fibonacci retracement at $94,253, offering approximately 6% upside potential from current prices.

Ethereum Breaks Below Moving Average, Eyes Deeper Losses

Ethereum faced rejection at its 50-day Exponential Moving Average (EMA) at $3,249 on December 10, unable to close above this critical resistance. The rejection triggered an 11% plunge on Tuesday, sending ETH below $3,000 and ultimately settling around $3.11K by midweek (UTC+8).

The technical deterioration is evident. RSI has dropped to 41, mirroring the broader weakness seen across the asset class and confirming strengthening downward momentum. The MACD produced a bearish crossover on Wednesday, removing any lingering hope for a near-term recovery and reinforcing the negative technical setup.

If the correction extends, Ethereum would likely test the $2,749 support level—representing a 12% decline from the current price. Should stabilization occur instead, the immediate resistance barrier remains the 50-day EMA zone near $3,249, which must be reclaimed for a bullish reversal signal.

The Broader Market Context

Across all three major cryptocurrencies, the technical deterioration follows a consistent pattern: failed breakout attempts, bearish momentum crossovers, and systematic breakdown below previously key support levels. The combination of weakening RSI readings and MACD inversions across multiple timeframes suggests this correction phase has room to extend. Market participants should monitor these critical price levels closely, as breaks below them could accelerate further selling into year-end.