Date: Fri, February 28, 2025 | 06:10 AM GMT
The cryptocurrency market continues to face a wave of correction that started after the November rally. Investor sentiment has shifted towards panic as Bitcoin (BTC) has fallen to $79K from its all-time high of $110K, while Ethereum (ETH) has dipped to $2,100.
Amid this market-wide downturn, two major altcoins, Cardano (ADA) and XRP (XRP), have taken significant hits. ADA has declined by over 11% after failing to hold a key support, whereas XRP is down by 9%, currently sitting at the same level where ADA recently broke down.
Source: Coinmarketcap Cardano (ADA) – A Breakdown Below 200MA
On the daily timeframe, ADA has been trading within a descending broadening wedge pattern since reaching its high of $1.32 in early December. Over the past 24 hours, ADA has failed to hold its key support at $0.65, along with the 200-day moving average (200MA). This breakdown has pushed the price down to its current level of $0.58, indicating increasing downside pressure.
Cardano (ADA) Daily Chart/Coinsprobe (Source: Tradingview) With no immediate signs of reversal, ADA could continue its bearish trend, potentially testing the next support zone near $0.51. However, if buyers step in and reclaim the $0.65 level, a recovery attempt could be on the horizon.
XRP (XRP) – Will It Hold or Follow ADA’s Breakdown?
Similar to ADA, XRP has also been trading in a descending broadening wedge pattern since reaching its local high of $3.45 on January 16. The prolonged downtrend has now brought XRP to a critical support range between $1.90 and $2.01—exactly the same level where ADA recently broke down.
XRP Daily Chart/Coinsprobe (Source: Tradingview) If buyers manage to hold XRP above this key zone, there’s a chance for a potential bounce. However, failure to maintain support could trigger a more significant decline, potentially pushing the price further downward toward the $1.64 region.
Final Thoughts – A Decisive Moment for XRP
ADA’s failure to hold support raises concerns that XRP could follow a similar breakdown if it does not find strong buyer interest. The next few days will be crucial in determining whether XRP can resist further decline or if it will mirror ADA’s sharp drop.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions
