Ripple (XRP), BNB (previously known as Binance Coin), and Solana (SOL) are trading in the red on Tuesday as the broader cryptocurrency market suffers a sell-off wave that has triggered $1 billion in liquidations over the last 24 hours. Bitcoin (BTC) has dropped to $107,000, with Ethereum (ETH) at $3,600 at the time of writing.
Technically, the altcoins are at a higher risk of further losses as selling pressure increases.
XRP holds at key support amid rising selling pressure
XRP recovers over 1% at press time on Tuesday, following a nearly 8% loss on the previous day. Despite a bearish start to the week, the XRP bulls hold a stronghold at the $2.30 support level marked by the October 11 low.
If XRP drops below $2.30, it could extend the decline to the $2.19 and $1.90 lows from October 17 and June 22, respectively.
The downward shift in the 50-day Exponential Moving Average (EMA) risks crossing below the 200-day EMA, which would trigger a Death Cross pattern. Typically, it is considered a sell signal as a short-term decline outpaces the longer-term trend.
The momentum indicators on the daily chart suggest a bearish shift in trend, as the declining Moving Average Convergence Divergence (MACD) converges with the signal line, indicating a fading of bullish momentum. Additionally, the Relative Strength Index (RSI) at 39 maintains a downward slope as selling pressure increases.
XRP/USDT daily price chart.
Looking up, a potential rebound could test the 200-day EMA at $2.60.
BNB extends the bearish flag breakout
BNB extends the downside breakout of a bearish flag pattern on the 4-hour chart, previously mentioned by FXStreet. At the time of writing, BNB trades below $1,000 on Tuesday following the 8% decline on the previous day.
BNB bears aim for the $932 support level, marked by the September 26 low, as their immediate target. If the downtrend exceeds $932, it could extend the decline to $819, achieve the 25% downside target of the bearish flag.
Following a Death Cross pattern between the 50-period and 200-period EMAs on the 4-hour chart, the 100-period and 200-period EMAs converge for a bearish crossover. If the EMAs achieve a descending alignment, the BNB price trend on the shorter timeframe will turn bearish.
Corroborating the bearish dominance on the same chart, the MACD extends a downtrend in the negative territory. Furthermore, the RSI hovers in the oversold region, indicating high selling pressure.
BNB/USDT 4-hour price chart.
If BNB manages to resurface above the $1,000 level, the 50-period EMA at $1,075 would act as the immediate resistance.
Solana declines despite institutional support
Solana ticks lower by nearly 1% at press time on Tuesday, extending the 11% decline from Monday. Despite the US spot Solana Exchange Traded Funds (ETFs) recording $70.05 million of inflows on Monday, marking the highest and fourth consecutive day of positive flow.
SOL spot ETFs inflows. Source: Sosovalue.
Still, the breakdown of a support trendline and the $174 zone on Monday warns of an extended correction to the $153 support zone.
Amid the decline, the 50-day EMA risks a bearish crossover with the 100-day EMA, considered a sell signal by the average lines.
Similar to XRP, the technical indicators suggest a renewed selling pressure in Solana, as the MACD crosses below the signal line and the RSI at 32 approaches the oversold zone.
SOL/USDT daily price chart.
To reinforce an uptrend, SOL should surface above the $174 support-turned-resistance zone, potentially targeting the 200-day EMA at $186.