- Bitcoin and Ethereum turn bearish
- Solana and Ethereum retreat after failed bounce back
- Jamie Dimon warns of the economic outlook
Cryptocurrencies can’t seem to get a break. After what appeared to be a break-out week, the market is yet again under pressure, with major coins pulling back amid a stalled bounce back. Bitcoin has already retreated from highs of $32,349 recorded early in the week to below the $30,000 level. Ethereum’s struggles to find support above the $2,000 level has also seen it tank to lows of $1814.
Ripple and Solana are the other coins following queue amid the ongoing sell-off in the market. The two are again under pressure to continue the sell-off that started last year. The sell-off has been triggered by negative rhetoric about the health of the economy and concerns about the long-term outlook.
XRPUSD technical analysis
XRPUSD has turned bearish after the failed bounce back and staring at further losses below the $0.37 support level. A break below the support level could result in the coin plunging back to 17-month lows of $0.33 registered last month.
Failure to bounce back and find support above the $0.44 level has left XRPUSD exposed to further losses in the continuation of the long-term downtrend. The dollar strengthening in recent days after a recent pullback is one factor that could pile pressure on Ripple, resulting in further losses.
Solana technical analysis
Solana is another coin feeling the brunt of the overall cryptocurrency sector crashing. After failing to power above the $50 level, SOLUSD has turned bearish and is at risk of plunging to 16-month lows at the $35 a coin support level.
Three consecutive days of losses have seen major indicators turn bearish, led by the Relative Strength Index, which implies a buildup in selling pressure. A slide below the $40 level affirms short sellers are in control and likely to push prices lower.
Why are Ripple and Solana tanking?
Ripple and Solana are on the receiving end of the overall market being spooked by JPMorgan CEO Jamie Dimon’s analysis of the economy. According to the powerful banker, the US faces a tough economic outlook amid the inflationary pressures.
According to Dimon, people should brace themselves for a hurricane due to the issues brought about by the ongoing Russian invasion of Ukraine and higher oil prices. The sentiments come when investors have been wary of most being forced to shun riskier assets amid the uncertain outlook.
The result has been a significant capital outflow out of cryptocurrencies and other speculative assets, conversely fuelling significant price declines. The overall stock market turning bearish has not helped the course as it affirms the blood bath in the capital markets.
Ripple, on the other hand, has seen its sentiments in the market take a significant hit amid its ongoing court tussle with the SEC. Concerns about the lawsuit’s outcome where the company’s executives are accused of selling illegal securities have only gone to give investors a reason to sell the coin amid the sell-off wave in the market. The coin is already down by more than 50%. While it looks oversold at current levels, investors have continued to push it lower on any bounce back.
Solana has also remained under pressure despite its ecosystem becoming a key non-fungible token ecosystem usurping Ethereum, be it for a day. Solana NFT collections continue to top charts, all but affirming its growing use case.
The short-term outlook in the cryptocurrency remains bearish; any negative news about the economic outlook contains to give traders a reason to sell. Consequently, Ripple and Solana look set to remain under pressure until the broader market sell-off dust settles.