Crypto Price Prediction: Why Crypto Market Is Down Today
Bitcoin, Ethereum, XRP, Sol, Cardano And Dogecoin Price Prediction
Why Is Crypto Down Today
The global cryptocurrency market experienced a 4.02% decline, reducing its market capitalization to $3.47 trillion. Despite this downturn, trading volumes increased by 113.90%, reaching $354 billion. The Fear and Greed Index moved to 78, indicating a shift from extreme greed to greed.
Why Bitcoin is Going Down
Bitcoin is showing bearish signs despite high market greed, with a 9% drop after rejection from a new ATH. The Fear and Greed Index indicates high greed, while indicators suggest a potential downtrend. BTC recently fell below an inclined trendline, losing support after failing to break the $100,000 psychological level. If the $94,000 support fails, a drop to $90,000 is likely. A bounce above this trendline and a decisive weekly close over $100,000 could push BTC toward a new ATH at $112,000.
Why Ethereum Is Going Down
On December 9, Ethereum hit a peak of $4,087 but faced rejection near the March macro high and the critical $4,000 psychological resistance level. The price action formed a Double Top pattern, indicating a bearish outlook. Additionally, the daily chart revealed an Evening Star pattern, further signaling downward momentum. CoinGlass data showed that Ethereum's decline was accompanied by significant liquidations, with over $44 million in leveraged positions wiped out in the last 18 hours, including $42 million in long positions.
Why XRP Is Going Down
XRP's recent decline appears linked to Ripple CEO Brad Garlinghouse's interview on CBS's 60 Minutes. While the discussion addressed Ripple's challenges, it notably excluded the pivotal Federal Judge's ruling that XRP is not a security. Despite XRP's impressive 340% rise over the past 30 days, high selling pressure from profit-taking tokenholders has triggered a market correction. Adding to the downturn, over $14.5 million in XRP long positions were liquidated within 24 hours, contributing to a larger $358 million sell-off in the crypto market, which further drove prices down.
Why Solana Is Going Down
Solana (SOL) is currently trading about 17% below its peak from November 22, with its market cap now standing at $103.65 billion. The chart reveals a descending channel, reflecting a temporary pullback following a strong rally. A breakout above the channel's upper boundary, supported by strong trading volume, could reignite upward momentum, potentially aiming for the previous resistance level near $238. On the other hand, if the breakout doesn't occur, the price might continue to consolidate or drop further toward key support levels around $205 or even $165.
Why Cardano Is Going Down
Cardano’s Dec. 9 candlestick reveals bulls attempting to defend the 50% Fibonacci retracement level at $1.10. However, ADA has dropped below $1, losing over 12% in the past 24 hours. The altcoin faces strong resistance between $1.12 and $1.24 on the weekly chart. Adding to the pressure, hackers compromised Cardano’s X account on Dec. 8, spreading false SEC lawsuit claims and promoting a fake token, as confirmed by the Cardano Foundation. ADA, now ranked 9th, also exhibits bearish divergence, with higher highs in price but lower highs on the RSI, indicating fading bullish momentum and the potential for sideways movement or a pullback.
Why Dogecoin Is Going Down
On December 9, Dogecoin's price fell by 11.6% to $0.428 following Bitcoin's drop below $100,000, which triggered significant liquidations across the crypto market. In the Dogecoin futures market, $25.42 million was liquidated, including $21.98 million in long positions, highlighting overly optimistic bets on its price. The decline occurred after DOGE hit the upper boundary of its ascending channel. Currently, bears are trading below the channel's lower trendline near the 20-day EMA at $0.420, with a potential further drop to the 0.236 Fibonacci retracement level at $0.391, marking an additional 9.75% decrease.
