XRP and Bitcoin support is precarious, Nasdaq top signals raise concerns.

This week, the payment-focused cryptocurrency XRP fell over 6%, touching the key support level of $2, which has been a short positions fatigue zone since December of last year. If this support fails, investors may accelerate dumping, leading to a further dip in price. Currently, the price is still holding at support, and to turn bullish, it needs to break through the descending trend line since July (around $2.50).

Bitcoin is also under pressure, currently hovering near three key support levels: the trend line of continuous rise from 2023 to 2024, the 100-week SMA, and the 38.2% Fibonacci retracement level from the bear market low at the end of 2022 to the recent historical high of $126,000. If these supports are broken, attention will shift to the April low near $74,500 and about $70,000 below the peak of the 2021 bull market. If bulls wish to maintain confidence in the bull market, they need to reclaim the 50-week moving average (around $102,252).

In the traditional stock market, the Nasdaq index has formed a typical “hanging man” pattern on the monthly chart, indicating a weakening of upward momentum and a potential short-term correction. Bitcoin is highly correlated with tech stocks, so both face downside risks.

Overall, both XRP and Bitcoin are at key support levels, while the top signals from Nasdaq further increase market uncertainty. Investors need to be wary of potential dumping pressure, and it remains to be seen whether a Christmas rally will occur this year. (CoinDesk)