The cryptocurrency market is feeling the heat today, with both Bitcoin and XRP taking hits. Bitcoin is down by more than 3% and this shift in sentiment is partly due to an unexpected clash between Elon Musk and the U.S. President Donald Trump, which has been making headlines. While it’s not a full-blown financial crisis, the uncertainty is enough to make investors a bit jittery — and markets generally don’t react well to surprises.
On the technical front, Bitcoin’s RSI (Relative Strength Index) is trending downward, hinting that it might soon enter the oversold territory. Bitcoin could test the $98,000 support level if the downward trend continues.
Although this drop is worrying for some, it’s also a typical part of the market cycle. The bull market isn’t finished yet — Bitcoin is still above its crucial 200-day moving average, and a price recovery could be on the horizon after a bit of consolidation.
Adding to the pressure, over $285 million in long positions were liquidated across the crypto market in the past 24 hours, pushing prices down further. However, global liquidity metrics — which measure the flow of money in financial markets — remain robust. That’s a promising sign for a potential recovery in the weeks ahead.
As for XRP, there’s some good news on the regulatory side. New documents confirm that XRP will be recognized as a utility token under Europe’s MiCA (Markets in Crypto-Assets) regulation. This clarification strengthens Ripple’s long-term strategy in cross-border payments.
Yet, like the rest of the market, XRP’s price is also caught in the broader downtrend. It’s currently holding key support levels around $2, and technical analysis shows that there might be a possible rebound. Some believe that if XRP can maintain its position above this zone and replicate a pattern seen during its last major rally, it could see a climb.
In short, today’s crypto price drop is driven by a mix of market uncertainty, technical signals, and mass liquidations — but long-term prospects for both Bitcoin and XRP remain intact.
