XRP News Today: Crypto Market Corrects 5% After Week-Long Rally

Major cryptocurrencies such as Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) experienced a significant decline, with each token dropping more than 5% in the past 24 hours. This downturn came after a week-long rally that saw substantial gains for these cryptocurrencies. The market correction was driven by traders looking to lock in profits and broader market caution, as investors became wary of macroeconomic uncertainties and shifting capital flows.

The broader crypto market had surged alongside risk assets last week, fueled by macroeconomic tailwinds and renewed investor optimism. Positive U.S. inflation data, strong earnings from China's tech sector, and a breakthrough U.S.-China trade agreement boosted global equity markets, with crypto following suit. Bitcoin briefly topped $104,000 and ether climbed to $2,700 before both ran into resistance. However, signs are emerging that some overheated segments of the market may be due for a pause.

Bitcoin, the market's bellwether, dropped 2% to hover around $101,000, erasing gains made earlier in the week when it briefly crossed $105,000. This pullback triggered a massive $700 million in long liquidations, as leveraged traders betting on higher prices were caught off guard. The sell-off was partly attributed to profit-taking after Bitcoin’s recent rally, coupled with broader market caution. Posts on X highlighted a “soft” Asia trading session, with total market capitalization shedding $15.5 billion and capital flowing into stablecoins as investors sought safety. Other indicators including the Crypto Fear & Greed Index, a sentiment gauge, remains in “fear” territory, suggesting potential for a near-term bottom but also reflecting persistent unease.

Ethereum, XRP, and Solana also faced pressure. Ethereum fell 2.2%, trading near $2,450. The decline follows a 36% surge last week, fueled by optimism around Ethereum’s Pectra upgrade and a U.S.-UK trade deal. However, today’s risk-off sentiment reversed those gains, with ETH futures contributing significantly to the liquidation tally. XRP, often a darling of retail traders, gains 4%, trading at $2.5. Solana, a high-performance blockchain token, also dropped 2.5%, trading at $170.

Large-cap altcoins like Dogecoin and Cardano led losses, each down 7%. Dogecoin, trading at $0.2, has struggled to maintain momentum despite speculation around a potential ETF and Elon Musk’s influence. Cardano, known for its innovative blockchain technology, also faced a significant decline, reflecting the broader market sentiment.

The downturn aligns with macroeconomic headwinds, including uncertainty over Federal Reserve rate cuts and fears of stagflation. While the market remains in a “holding pattern,” Bitcoin’s dominance at 59% suggests capital is consolidating into safer assets. For now, traders are eyeing key support levels—$96,000 for BTC, $2,300 for ETH, and $2.20 for XRP – as potential inflection points. With volatility likely to persist, cautious positioning and robust risk management are critical in navigating this dynamic market.