NAIROBI (CoinChapter.com) — Bitcoin (BTC), Ethereum (ETH), and XRP (XRP) are navigating turbulent waters as traders assess near-term trends. While Bitcoin hovers below $100,000, Ethereum struggles to maintain key support, and XRP tests critical levels.
Bitcoin Social Sentiment Signals Possible Recovery
Bitcoin’s price correction has fueled bearish sentiment, with the cryptocurrency trading at $97,150 after hitting a yearly high of $108,300 last week. Social media sentiment has dropped to its lowest point in 2024, according to Santiment data. The current ratio of positive to negative comments is 4:5, reflecting fear among retail investors.
BTC social media sentiment, comment ratio. Source: Santiment
Market observers interpret this pessimism as a contrarian signal for recovery. For instance, analyst Elja Boom suggests Bitcoin could surpass $100,000 in the coming weeks based on historical fractal patterns.
However, Rekt Capital warns of further short-term corrections, aligning with past cycles where Weeks 6–8 were marked by downward trends.
BTC/USD, price discovery stage. Source: Rekt Capital
Bitcoin’s price has also been influenced by ETF-related market activity. According to Farside Investors, the U.S. Bitcoin spot ETF market saw $457 million in inflows last week.
Late-week outflows, influenced by Federal Reserve Chair Jerome Powell’s hawkish comments, reduced investor confidence. Uncertainty around the proposed U.S. strategic Bitcoin reserve has added to market caution.
Ethereum Faces Downside Risk Amid Selling Pressure
Ethereum’s price has dropped 17% in December, trading below the critical $3,500 level. Over the weekend, ETH plunged further to $3,050 as blockchain analytics firm Spot On Chain reported significant sell-offs by Tron founder Justin Sun. Since November, Sun has liquidated $400 million worth of ETH, including $143 million in recent transactions.
Ethereum outflows peaked at $400M in December. Source: Spot On Chain
Despite the bearish sentiment, some analysts maintain an optimistic outlook. An inverse head-and-shoulders (iHS) pattern on Ethereum’s chart could signal a potential rally toward $4,000 in early 2025.
ETH/USD 1-week price chart. Source: TradingView
However, IncomeSharks, a crypto market analyst, cautioned that low trading volume might keep ETH vulnerable to further declines.
XRP Holds Steady at Critical Support Amid Ripple Developments
XRP is testing the 26-day EMA as a crucial support level after weeks of erratic price action. Currently trading at $2.28, XRP risks falling to $2.15 if the level doesn’t hold, according to volume and RSI indicators. However, a bounce from this dynamic support could fuel a recovery toward $2.60 and beyond.
XRP/USD 1-day price chart. Source: TradingView
Ripple’s recent on-chain activity has attracted attention, with the company transferring 90 million XRP to unknown wallets in two transactions. Market participants are speculating on the potential implications for XRP liquidity and price dynamics.
Meanwhile, legal developments surrounding Ripple’s battle with the SEC remain a focal point for investors. Fox Business journalist Eleanor Terrett noted scrutiny over the SEC’s appeal and potential conflicts of interest, which could influence XRP’s market outlook.
If the agency revisits its legal stance, XRP could potentially approach its 2018 high of $3.55, depending on market conditions.
As Bitcoin wrestles with psychological resistance, Ethereum fends off bearish pressure, and XRP navigates legal uncertainties, the broader crypto market remains volatile.
