XRP leads crypto slide as bitcoin eyes $70,000, ether follows
- XRP fell the most among major cryptocurrencies as bitcoin hovered near $70,000.
- Ether also declined, with traders citing profit-taking and low volumes.
- Market focus remains on bitcoin's ability to hold above $70,000 support.
Ripple-linked token takes the hardest hit
XRP, the token associated with Ripple, led losses across major cryptocurrencies on Tuesday as the broader market turned cautious. Bitcoin, the largest digital asset, hovered near the $70,000 mark, but failed to inspire fresh buying among altcoin traders.
Data from CoinDesk showed XRP dropping sharply in early Asian trading, with sellers outpacing buyers across major exchanges. The decline came without any specific negative news tied to Ripple, suggesting a broader pullback in risk appetite.
Ether slips as traders book profits
Ether, the second-largest cryptocurrency, also traded lower. The token gave back some of its recent gains as traders moved to lock in profits after a steady climb over the past week. Volume remained thin, amplifying price swings.
Market participants pointed to a lack of fresh catalysts. With no major regulatory or technical announcements, momentum faded quickly, leaving altcoins vulnerable to sudden sell-offs.
Bitcoin steady but under pressure
Bitcoin itself remained range-bound, trading just below the psychologically important $70,000 level. Some traders see this as a consolidation phase before another push higher, while others warn of a potential retracement if support fails.
"The market is watching $70,000 closely," said one analyst. "A clean break above could trigger fresh buying, but a rejection might lead to a deeper correction."
Altcoin sentiment weakens
The broader altcoin market mirrored XRP's weakness. Most top-20 tokens by market capitalisation traded in the red, though losses were modest compared with XRP. This divergence highlights the token's higher sensitivity to speculative flows.
Traders noted that leveraged positions in XRP had built up in recent weeks, and the current slide may be forcing some to unwind. Liquidation data from major exchanges suggested a spike in long-position closures.
What to watch next
All eyes now turn to whether bitcoin can hold above $70,000 in the coming sessions. A decisive move could set the tone for the rest of the week, not just for bitcoin but for the entire crypto market.
Traders are also monitoring any regulatory headlines from the US, given the ongoing legal battles involving Ripple and other crypto firms. Until clarity emerges, volatility is likely to remain elevated.