XRP and Bitcoin Approach Key Support as Nasdaq Signals Caution
Both XRP and Bitcoin are trading near crucial support levels, while Nasdaq’s recent price action raises red flags for investors.
Payments-focused XRP has fallen over 6% this week, testing the $2 support level, a key zone that has historically acted as a bear fatigue area. Weekly candle wicks show that selling often eases here, but a decisive break could trigger a sharper decline as holders rush for the exits. To turn bullish, XRP must overcome the descending trendline connecting lower highs since July, currently around $2.50.
Bitcoin is hovering near one of its most important support clusters in years: the bullish trendline tracing higher lows through 2023–2024, the 100-week SMA, and the 38.2% Fibonacci retracement from the 2022 bear-market low to the recent all-time high of just above $126,000. If these supports fail, traders will likely look to April’s swing low near $74,500, followed by the 2021 bull-market peak just under $70,000. Some market participants are already bracing for sub-$80,000 BTC in early 2026.
On the upside, Bitcoin bulls need to reclaim the 50-week SMA at approximately $102,252 to signal that the broader uptrend is intact — a challenging task as Nasdaq shows signs of strain. The tech-heavy index recently formed a “hanging man” candlestick on its monthly chart, indicating emerging selling pressure and potential trend exhaustion. Characterized by a small real body near the top, a long lower shadow, and little or no upper shadow, this pattern often warns of a pause or reversal at record highs. Given the historical correlation between Bitcoin and tech stocks, this adds another layer of caution for crypto traders.
With XRP and Bitcoin teetering at key support levels and Nasdaq signaling potential weakness, traders face a high-stakes setup. The much-anticipated Santa rally in tech stocks and cryptocurrencies may be at risk this year.
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