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XRP, Cardano, and Solana Drop 3-5% as Technical Charts Flash More Pain Ahead

MarketDash Editorial Team
13 hours ago
XRP, Cardano, and Solana all suffered sharp declines on Wednesday, with technical breakdowns across multiple timeframes suggesting the selloff may have further to run. Macro headwinds and regulatory delays are adding pressure to already-weak chart structures.

Wednesday was not kind to altcoins. XRP (XRP), Cardano (ADA), and Solana (SOL) all moved sharply lower, and if you're looking at the charts hoping for a quick bounce, you might want to brace yourself. Multiple technical breakdowns are signaling that this selloff could have more room to run.

XRP Loses a Key Level That Held for Months

XRP is down around 3.5% after what technical analysts would call a decisive daily breakdown. That's chart-speak for "it fell through an important floor and didn't look back."

The latest selloff pushed the price below the $2.33 volume node, a level that had been holding as balance support all the way through September and October. Losing that support signals a shift from consolidation to continuation, meaning the downtrend might be picking up steam rather than losing it.

XRP is now testing the rising base from the April and June lows near $1.85 to $1.90. Here's the problem: the rebounds have been weak, showing minimal follow-through. That suggests defensive buying rather than fresh accumulation. In other words, people are trying to stop the bleeding, not eagerly buying the dip.

A daily close below this trendline would expose the $1.60 to $1.65 demand zone, which was the last major accumulation area before the summer breakout. On the upside, any recoveries remain corrective unless XRP can reclaim $2 and then close back above $2.33. Until then, the path of least resistance is lower.

Cardano Is Running Out of Near-Term Support

Cardano slid about 4%, and the chart setup is looking increasingly fragile. All key exponential moving averages are stacked bearishly and sloping lower, which is a technical way of saying the trend is firmly pointed down.

The 20-day EMA near $0.42 continues to cap rallies, while price action shows compressed ranges and lower highs. The Parabolic SAR indicator remains above price, reinforcing downside control after a failed flip attempt. If you're unfamiliar with Parabolic SAR, just know it's a momentum tool that acts like a trailing stop, and right now it's telling traders to stay cautious.

The $0.38 to $0.37 zone is now critical. A daily close below $0.38 opens downside toward $0.30 to $0.25. If selling pressure persists, $0.2299 becomes a realistic reference point. That level happens to be Cardano's all-time low, which gives you a sense of just how serious this breakdown could get.

Solana's Compression Pattern Is About to Resolve

Solana dropped about 5% and is sitting at the lower boundary of a multi-week compression. The broader trend remains bearish, with SOL printing lower highs and lower lows beneath a declining EMA stack led by the 20-day near $134 and the 50-day around $147.

Price action has compressed into a descending triangle, with flat support around $122 to $124. Descending triangles typically resolve downward, especially when momentum indicators remain weak. The Supertrend indicator is still in sell mode, and repeated rejections below the 20-day EMA suggest there are no signs of a possible rebound at current levels.

A daily close below $122 would resolve the pattern lower and target the $112 to $105 region, where prior demand last stabilized in early August. Any rebound remains corrective unless SOL can reclaim $134 on a closing basis. Until that happens, rallies are likely to be sold into.

Regulatory and Macro Headwinds Aren't Helping

The synchronized selloff across these major altcoins comes amid broader risk-off sentiment and fading liquidity across digital assets. Technical weakness is one thing, but when you layer on regulatory uncertainty, it creates an environment where buyers have little reason to step in aggressively.

Pressure intensified after the U.S. Senate Banking Committee delayed work on the long-awaited cryptocurrency market structure bill, pushing further negotiations into early 2026. That's a significant setback for an industry that's been hoping for clearer regulatory guidelines.

Tensions rose further after Senator Elizabeth Warren (D-Mass.) urged federal agencies to scrutinize PancakeSwap (CAKE) over alleged links to Trump-connected World Liberty Financial (CRYPTO: WLFI). Chairman Tim Scott's (R-SC) office said talks with Democrats remain ongoing, but disagreements over financial stability, market integrity, and ethics provisions continue to slow progress and add uncertainty for the sector.

When regulation is uncertain and charts are breaking down, crypto tends to trade poorly. Right now, both of those conditions are in play, which is why these selloffs feel less like temporary pullbacks and more like the beginning of a deeper correction. Whether that proves true will depend on whether these key support levels hold or give way in the coming sessions.

Back to News

XRP, Cardano, and Solana Drop 3-5% as Technical Charts Flash More Pain Ahead

MarketDash Editorial Team
13 hours ago
XRP, Cardano, and Solana all suffered sharp declines on Wednesday, with technical breakdowns across multiple timeframes suggesting the selloff may have further to run. Macro headwinds and regulatory delays are adding pressure to already-weak chart structures.

Wednesday was not kind to altcoins. XRP (XRP), Cardano (ADA), and Solana (SOL) all moved sharply lower, and if you're looking at the charts hoping for a quick bounce, you might want to brace yourself. Multiple technical breakdowns are signaling that this selloff could have more room to run.

XRP Loses a Key Level That Held for Months

XRP is down around 3.5% after what technical analysts would call a decisive daily breakdown. That's chart-speak for "it fell through an important floor and didn't look back."

The latest selloff pushed the price below the $2.33 volume node, a level that had been holding as balance support all the way through September and October. Losing that support signals a shift from consolidation to continuation, meaning the downtrend might be picking up steam rather than losing it.

XRP is now testing the rising base from the April and June lows near $1.85 to $1.90. Here's the problem: the rebounds have been weak, showing minimal follow-through. That suggests defensive buying rather than fresh accumulation. In other words, people are trying to stop the bleeding, not eagerly buying the dip.

A daily close below this trendline would expose the $1.60 to $1.65 demand zone, which was the last major accumulation area before the summer breakout. On the upside, any recoveries remain corrective unless XRP can reclaim $2 and then close back above $2.33. Until then, the path of least resistance is lower.

Cardano Is Running Out of Near-Term Support

Cardano slid about 4%, and the chart setup is looking increasingly fragile. All key exponential moving averages are stacked bearishly and sloping lower, which is a technical way of saying the trend is firmly pointed down.

The 20-day EMA near $0.42 continues to cap rallies, while price action shows compressed ranges and lower highs. The Parabolic SAR indicator remains above price, reinforcing downside control after a failed flip attempt. If you're unfamiliar with Parabolic SAR, just know it's a momentum tool that acts like a trailing stop, and right now it's telling traders to stay cautious.

The $0.38 to $0.37 zone is now critical. A daily close below $0.38 opens downside toward $0.30 to $0.25. If selling pressure persists, $0.2299 becomes a realistic reference point. That level happens to be Cardano's all-time low, which gives you a sense of just how serious this breakdown could get.

Solana's Compression Pattern Is About to Resolve

Solana dropped about 5% and is sitting at the lower boundary of a multi-week compression. The broader trend remains bearish, with SOL printing lower highs and lower lows beneath a declining EMA stack led by the 20-day near $134 and the 50-day around $147.

Price action has compressed into a descending triangle, with flat support around $122 to $124. Descending triangles typically resolve downward, especially when momentum indicators remain weak. The Supertrend indicator is still in sell mode, and repeated rejections below the 20-day EMA suggest there are no signs of a possible rebound at current levels.

A daily close below $122 would resolve the pattern lower and target the $112 to $105 region, where prior demand last stabilized in early August. Any rebound remains corrective unless SOL can reclaim $134 on a closing basis. Until that happens, rallies are likely to be sold into.

Regulatory and Macro Headwinds Aren't Helping

The synchronized selloff across these major altcoins comes amid broader risk-off sentiment and fading liquidity across digital assets. Technical weakness is one thing, but when you layer on regulatory uncertainty, it creates an environment where buyers have little reason to step in aggressively.

Pressure intensified after the U.S. Senate Banking Committee delayed work on the long-awaited cryptocurrency market structure bill, pushing further negotiations into early 2026. That's a significant setback for an industry that's been hoping for clearer regulatory guidelines.

Tensions rose further after Senator Elizabeth Warren (D-Mass.) urged federal agencies to scrutinize PancakeSwap (CAKE) over alleged links to Trump-connected World Liberty Financial (CRYPTO: WLFI). Chairman Tim Scott's (R-SC) office said talks with Democrats remain ongoing, but disagreements over financial stability, market integrity, and ethics provisions continue to slow progress and add uncertainty for the sector.

When regulation is uncertain and charts are breaking down, crypto tends to trade poorly. Right now, both of those conditions are in play, which is why these selloffs feel less like temporary pullbacks and more like the beginning of a deeper correction. Whether that proves true will depend on whether these key support levels hold or give way in the coming sessions.