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XRP, Dogecoin Dive 12% as Altcoin Carnage Leads to Highest Bullish Liquidation in Nearly 3 Years

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Major tokens and midcaps registered one of their worst days in recent months with a sharp drop during early Asian hours on Tuesday, even as bitcoin (BTC) was relatively little changed.

XRP, dogecoin (DOGE) and Cardano’s ADA fell as much as 15% in the past 24 hours, data shows, as selling pressure mounted in late U.S. hours and amplified in early Asian time. Bitcoin dropped 3%, while ether (ETH) and Solana’s SOL fell 7%, as tron’s TRX nearly reversed all of last week’s gains with a 17% haircut.

Overall market capitalization dropped by 6.5%, largest drop since October, while the broad-based CoinDesk 20 (CD20) index slumped 7%.

No immediate reason spurred the selling pressure, but it came on the back of internet giant Google announcing benchmark tests on its new Willow quantum computing chip — which led to market concerns about what it meant for crypto privacy and wallet security.

Market analysts and traders warned of short-term selling pressure amid an overheated market after a November rally, as CoinDesk <a href=»https://www.coindesk.com/markets/2024/12/09/cardano-xrp-lead-losses-among-majors-as-market-slide-liquidates-300-m-bullish-bets» target=»_blank»>reported earlier</a> Monday.

The fall led to over $1.5 billion in longs, or bullish bets, being liquidated, the highest such figure since 2021. Altcoin futures tracked under “Others” by data provider CoinGlass led market losses at $560 million in an unusual move, with doge and XRP futures losing more than $70 million each.

Some market watchers pointed out that the selling pressure first rose from U.S.-listed Coinbase, with an unusual market impact on XRP and metrics indicating that traders were over-leveraged.

“Something absolutely strange happened,” widely followed quant trader @ltrd_ said on X. “On a large, relatively mature market, we witnessed a cascade of big sell orders that caused the market to drop by over 5%. We don’t know exactly what happened, but it’s certainly unusual.”

“You can see that those sell orders are not normal…Perhaps a major player was forced to sell as if there were no tomorrow,” they added.

A liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to the trader’s inability to meet the margin requirements. Large-scale liquidations can indicate market extremes, like panic selling or buying. A cascade of liquidations might suggest a market turning point, where a price reversal could be imminent due to an overreaction in market sentiment.

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Ethereum Surges After Holding $2,477, Fueled by Very Heavy Trading Volume

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Global economic tensions and trade disputes continue to influence cryptocurrency markets, with ETH showing resilience despite broader market uncertainty.

The second-largest cryptocurrency is currently navigating a critical technical zone between $2,500-$2,530, which analysts identify as immediate resistance that must be overcome for continued upward movement.

Institutional interest remains strong, with spot Ethereum ETFs recording consecutive days of positive inflows, signaling growing confidence from larger investors despite the recent volatility.

Technical Analysis Highlights

  • 24-hour ETH price action revealed a substantial 3.5% range ($99.85).
  • Sharp sell-off during midnight hour saw price plummet to $2,477.40, establishing a key support zone.
  • Extraordinary volume (291,395 units, nearly 3x average) confirmed the significance of the support level.
  • Buyers stepped in at the $2,467-$2,480 support band, confirmed by high-volume accumulation during the 08:00-09:00 period.
  • Recent price action shows bullish momentum with ETH reclaiming the $2,515 level.
  • Potential higher low pattern suggests the correction may have found its bottom.
  • $2,520-$2,530 area remains the immediate resistance to overcome for continued upward movement.
  • Significant bullish surge at 13:35 saw price jump from $2,515.85 to $2,521.79, accompanied by exceptional volume (5,839 units).
  • Sharp reversal occurred at 14:00, with price dropping 5.07 points to $2,508.02 on heavy volume (4,043 units).
  • Hourly range of 14.46 points ($2,508.02-$2,522.48) demonstrates market indecision.

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XRP Plunges Below $2.30 Amid Heavy Selling Pressure

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Global economic tensions are weighing heavily on cryptocurrency markets as XRP experiences a significant correction amid heavy selling pressure.

The recent announcement of potential 50% tariffs on European Union imports by the US government has triggered widespread market uncertainty, with XRP falling alongside most major cryptocurrencies despite Bitcoin recently reaching new all-time highs.

Technical analysts point to critical support at the $2.25-$2.26 range, with market watchers warning that a break below this level could trigger deeper corrections toward the $1.55-$1.90 zone.

Meanwhile, institutional interest remains strong with Volatility Shares launching an XRP futures ETF and leveraged ETF inflows surging despite the price dip, suggesting Wall Street continues accumulating positions during market weakness.

Technical Analysis Highlights

  • XRP underwent a notable 3.46% correction over the 24-hour period, with price declining from $2.361 to $2.303, creating an overall range of $0.084 (3.57%).
  • The most significant price action occurred during the midnight hour (00:00), when XRP plummeted to $2.297 on exceptionally high volume (37.1M), establishing a strong volume-based support zone.
  • A secondary sell-off at 08:00 saw price touch the period low of $2.280 with the highest volume spike (39.9M), confirming a double-bottom formation.
  • In the last hour, XRP experienced significant volatility with a recovery attempt following the earlier correction.
  • After reaching a low of $2.297 at 13:11, price formed a base around $2.298 before staging a substantial rally beginning at 13:27, peaking at $2.307 at 13:36-13:39 with exceptionally high volume (627K-480K).
  • This bullish momentum created a clear resistance zone at $2.307, which was tested multiple times.
  • The final 15 minutes saw profit-taking pressure emerge, with price retracing to $2.300, establishing a short-term support level that aligns with the psychological $2.30 threshold.

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Bitcoin Drops Below $107.5K as Trump Tariff Threat Triggers Crypto Sell-Off

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Bitcoin’s recent pullback has established strong volume-based resistance near $108,300, with support forming in the $106,700-$107,000 zone.

The correction accelerated with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal.

Technical analysis suggests Bitcoin is now trading within a compression zone, trapped between two major fair value gaps that will determine the upcoming market direction.

If bulls reclaim the $109K to $110K area, price could push toward resistance beyond $112K, while a break below $107,000 might test liquidity around $106K.

Technical Analysis Breakdown

  • The decline accelerated during the 22:00-23:00 hour on May 24th with exceptionally high volume (16,335 BTC), establishing a strong volume-based resistance near $108,300.
  • Support has formed in the $106,700-$107,000 zone where buyers emerged during the 09:00-10:00 period on May 25th, though recovery attempts have been modest with price consolidating around $107,500.
  • The overall technical structure suggests a short-term bearish trend with potential for further consolidation before directional clarity emerges.
  • Bitcoin experienced significant volatility with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal that saw prices decline to $107,393 by 14:00.
  • The most substantial price movement occurred during the 13:35 minute candle where BTC jumped nearly $150 with exceptionally high volume (148.76 BTC), establishing temporary resistance around $107,630.
  • Support formed near $107,400 where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.

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