Investors Face Challenges as Major Cryptocurrencies Plummet

Rising economic uncertainty in the United States and the pressures from central bank policies have led to significant declines in the cryptocurrency market. Notably, cryptocurrencies like XRP, Solana $105 (SOL), and Cardano ( ADA ) have experienced losses exceeding 6% in just the past 24 hours. Investors are closely monitoring both technical indicators and global developments, which necessitate a reevaluation of short-term expectations in this evolving landscape.

XRP Struggles to Maintain Key Support

XRP, directly associated with Ripple $2 Labs, has fallen below significant support levels due to recent value losses. According to Coinglass data, high-leverage positions concentrated around the $1.60 mark indicate potential short-term price rebounds, though the overall trend remains downward. Technical analysts are closely watching for a possible double bottom formation around the $1.80 level on the charts.

The Relative Strength Index (RSI) reaching the oversold zone may increase short-term recovery expectations for investors. However, the question of when the current downtrend will end depends not only on technical indicators but also on macroeconomic developments. Especially, the path the U.S. Federal Reserve takes in its monetary policies could significantly influence XRP’s price movements.

Solana and Cardano Face Deepening Declines

Solana (SOL) struggles to hold onto crucial support levels in the $100-110 range, having lost over 8% in the last week. Weak liquidity in the market raises the risk of sudden drops, prompting a cautious approach among investors. Historical price movements indicate that while quick recoveries have occurred after similar declines, their sustainability has been limited.

The situation for Cardano (ADA) $0.568078 appears even bleaker, with approximately a 23% loss in value over the past two weeks. The descending channel formation highlighted in technical analysis offers a slim chance for short-term relief, though the overall trend remains negative. Data from RSI and moving averages clearly illustrate ADA’s weak price trajectory, suggesting that cryptocurrency investors need to consider both technical setups and the broader market’s risk appetite.

Macro Developments Create Market Uncertainty

The downward trend in the cryptocurrency market cannot be solely attributed to technical analysis. New trade tariffs imposed by the U.S., interest rate policies, and global inflation expectations are negatively impacting investor psychology. Particularly, the tendency of large funds and institutional investors to reduce their positions plays a crucial role in determining the general direction of the market.

Technical indicators like RSI, MACD, and moving averages are being closely monitored. Additionally, breakouts at specific support and resistance points could pave the way for new price movements. Thus, both individual and institutional investors are keenly attentive not only to technical structures but also to the flow of market news. Liquidity conditions and movements in large wallets remain significant risk factors in the current volatile environment.