XRP and Bitcoin at Critical Levels as Nasdaq Signals Caution
XRP and Bitcoin are hovering near key support zones, while Nasdaq’s recent price action raises caution for both tech stocks and cryptocurrencies.
Payments-focused XRP has fallen more than 6% this week, testing the $2 support, a level that has historically acted as a bear fatigue zone. Weekly candle wicks suggest that selling pressure often eases here, but a break below $2 could trigger a sharper decline as holders exit. For a bullish shift, XRP needs to overcome the descending trendline connecting lower highs since July, currently around $2.50.
Bitcoin is also trading near critical support, marked by 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 bottom to the recent record high of just over $126,000. A breakdown would refocus attention on April’s swing low near $74,500, followed by the 2021 bull-market peak just below $70,000. Some traders are already bracing for sub-$80,000 BTC in early 2026.
On the upside, Bitcoin bulls must reclaim the 50-week SMA, just above $102,252, to signal that the broader uptrend remains intact. Complicating matters, Nasdaq recently formed a “hanging man” candlestick on the monthly chart. This pattern — a small real body near the top, a long lower shadow, and little or no upper shadow — warns of rising selling pressure and potential trend exhaustion. Given Bitcoin’s historical correlation with tech stocks, this adds additional caution for crypto markets.
With XRP and Bitcoin sitting at knife-edge support levels and Nasdaq signaling potential weakness, traders face a high-stakes scenario. The widely anticipated Santa rally for tech stocks and cryptocurrencies may be at risk this year.
