The calm weekend was followed by a Monday massacre for bitcoin as the asset plunged by seven grand within an hour or so.

Expectedly, the altcoins have it even worse, with massive price drops from the likes of DOGE, ADA, XRP, SOL, and many others.

BTC Dumps by $7K

Last Monday began somewhat similarly to this one, as BTC dumped hard to just under $100,000. However, it quickly bounced off and even skyrocketed to a new all-time high of over $109,000. More volatility ensued during the day, especially during and after Donald Trump’s inauguration.

His failure to mention crypto during his speech resulted in another correction but BTC remained north of $100,000. It jumped to $107,000 later on in the week but lost some ground during the weekend, which it spent at around $105,000.

Once the Monday Asian trading session kicked in, bitcoin’s price headed straight south. In a matter of a few hours, it dumped by over seven grand and briefly slipped below $98,000, leaving millions of liquidations.

Despite bouncing off to $99,000 now, BTC is still 5% down on the day. Its market capitalization has plunged to $1.960 trillion on CG, but its dominance over the alts has gone to over 56%, as most have suffered a lot more.

Alts Bleed Out

As mentioned above, the alternative coins have gone into deep red territory. Ethereum leads the adverse trend with a 7% drop that has pushed it below $3,100. XRP lost the $3 mark and has plummeted to $2.8. Solana, Dogecoin, Cardano, Chainlink, Avalanche, Stellar, and SUI are all down by double digits.

Even more painful declines of up to 20% come from VIRTUAL, XCN, SOS, RAY, PEPE, OP, BONK, and many others.

The cumulative market capitalization of all crypto assets has seen over $250 billion gone since yesterday. The metric has plunged to a multi-week low of $3.5 trillion on CG.

XRP failed to hold above $3 and the price action is now turning bearish.

Key Support levels: $2.6, $2, $1.6

Key Resistance levels: $3, $3.3 

1. First Major Sign of Weakens for XRP

It was critical for XRP to hold above $3 if there was hope of higher highs. This level was lost today and the price fell to $2.7. This drop has also turned the level at $3 into a key resistance.

The cryptocurrency fell by 11% today which shows sellers are returning. While this is a market-wide correction, the timing was quite unfortunate for XRP as this is turning the chart bearish.

2. Falling Volume Hinted at Correction

The first giveaway that a correction could be coming for XRP was seen on the volume profile. While the price made a higher high above $3, the volume did not do the same. This was an early sign that a bearish divergence was forming which called for caution.

3. Bearish Divergence Detected

The bearish divergence was quite obvious on the volume profile, as seen below. However, the same situation can also be seen on the MACD and RSI momentum indicators. This only strengthens the argument that XRP could have made a local top at $3.4 and a correction may follow now.

ADA crashed by 10% today as bears return.

Key Support levels: $0.90, $0.73

Key Resistance levels: $1, $1.3

1. Price Struggles at Key Support

Cardano is about to decide where it goes next. If the key support at 90 cents does not hold, then it will turn into a resistance and see the price fall lower towards 73 cents next. At that point, ADA will make a lower low which could indicate a prolonged correction has begun.

2. Momentum is Reversing

The volume is making lower highs, the price is making lower highs, and so does the RSI and MACD histogram. These are all bearish signals. It would be surprising to see the key support hold considering the above. However, until the 90 cents level breaks, it is too early to call it.

3. Impending Bearish Cross on Weekly Timeframe

A big warning sign is given by the weekly MACD which shows that a bearish cross is imminent. If so, that could be the start of a long correction that can see the price fall towards 73 cents or lower. This scenario is likely if the overall market enters a deep correction.