cryptocurrency market I fell againBitcoin, Ethereum, and XRP prices plunged after what looked like a promising rebound. Despite a strong lineup of optimistic narratives; October interest rate cut Momentum for greater regulatory clarity has weakened significantly. This is Questioning the prospects of the cryptocurrency industry Before the end of the year.
Technical breakdowns undermine market confidence
a sharp decline It started with a technical rift. Appeared on Bitcoin, Ethereum and XRP charts. In the past 24 hours, Bitcoin has resumed another downward trend, recently rising above $103,000 and threatening a break below $100,000.
According to Recent Outlook The rally for Bitcoin and other major cryptocurrencies looks good on paper, according to a DeFi report. However, technical analysis shows that the major cryptocurrency is currently below several key moving averages, including the 50-day, 100-day, and 200-day indicators. These moving averages often act as dynamic support zones, and a break below them tends to indicate waning bullish momentum.
Ethereum also followed this downward trend and fell below the $3,400 support line. The case of XRP was similar, with the cryptocurrency price falling below $2.3.
The technical deterioration of these major assets is conveying a more cautious stance among traders, many of whom see the current market structure as vulnerable to further declines.
Declining demand and institutional outflow
While there is still some optimism, from the Trump administration’s cryptocurrency-friendly policy direction to tokenization efforts by traditional financial institutions, new capital inflows have slowed.
bitcoin ETF spot, The asset, once a major source of institutional interest, has seen notable outflows since early October, wiping out billions of dollars in value. In terms of net flow and AUM, Bitcoin ETFs have been one of the most successful financial products in history. However, since October 10, ETFs have experienced net outflows of $1.4 billion.
On-chain data further supports this. Cooling demand story. long term holder We are reducing our holdings.As data from Glassnode shows, most of these are being absorbed by short-term holders.
In terms of market sentiment, Optimism still prevails This is what the conversation is about on social media. Michael Nadeau, founder of The DeFi Report, noted that despite the recent economic downturn, many investors remain hopeful. Investors seem to be attracted to bullish reports and are looking for something to hold on to.
As of this writing, Bitcoin is trading at $101,720, down 1.3% over the last 24 hours. Ethereum is also trading at $3,330, down about 1% during the same period. XRP I feel the worst. It is down 4.5% in the last 24 hours to trade at $2.2.
Featured image created with Dall.E, chart from Tradingview.com
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