Crypto Today: Bitcoin, Ethereum, XRP face elevated downside risk amid weak technical setups

• Bitcoin remains below $90,000, weighed down by a weak technical structure as both the MACD and RSI decline.
• Ethereum extends its correction for a second consecutive day despite a mild increase in Open Interest to $39.32 billion.
• XRP trades below the 50-day, 100-day, and 200-day EMAs, reinforcing a short-term bearish outlook.

Bitcoin (BTC) is struggling to stay above support at $89,000 at the time of writing, as headwinds intensify across the cryptocurrency market on Friday. Ethereum (ETH) and Ripple (XRP) are facing low retail and institutional demand, while bearish indicators continue to flash subtle signals that losses may extend further.

Low retail demand exposes Bitcoin, Ethereum, and XRP to further losses

Demand for Bitcoin has remained largely subdued since the October 10 crash, with futures Open Interest (OI) averaging $59.64 billion on Friday, down from $60.13 billion the previous day, and $66.17 billion on January 15.

OI represents the notional value of outstanding futures contracts. CoinGlass shows demand for BTC derivatives propelled futures OI to a record $94.12 billion in October. Bitcoin hit a new all-time high of $126,199 on October 6, emphasizing the need for elevated retail interest and demand.

Ethereum is also facing a significant drawdown in the derivatives market amid continued selling pressure. While CoinGlass data shows futures OI increasing slightly to $39.32 billion on Friday, from $38.57 billion the previous day, it remains strikingly below the record of $70.13 billion reached in August.

Meanwhile, XRP is grappling with low retail demand, as pervasive negative sentiment erodes market confidence. After rising to $4.55 billion on January 6, futures OI has declined, averaging $3.33 billion on Friday. Extending the sell-off in derivatives would underline the risk-off mood, leaving XRP in bearish hands.

Chart of the day: Bitcoin trades under pressure

Bitcoin has extended its down leg toward the $89,000 threshold, as indicators continue to flash bearish signals. The Relative Strength Index (RSI) at 42 on the daily chart, is pointing downward, suggesting that BTC’s technical structure could continue to weaken.

The Moving Average Convergence Divergence (MACD) remains below its signal line on the same chart, prompting investors to reduce exposure. Bearish momentum may build, with the MACD histogram bars expanding below the zero line.

Still, holding support at $89,000 could signal stability and encourage risk-on sentiment. A return above $90,000 is required to keep bears in check.

Altcoins technical outlook: Ethereum, XRP wobble as selling pressure intensifies

Ethereum holds in a range between $2,900 and $3,000 amid the overall downward trend in the crypto market. The RSI at 38 on the daily chart is accelerating toward oversold territory, as bears tighten their grip.

The MACD indicator on the same chart remains below the signal line, which could prompt investors to reduce exposure and protect capital. A break below $2,900 could accelerate the downtrend to the December 1 low at $2,716. 


Conversely, closing above the descending trendline could change ETH’s direction toward the 50-day Exponential Moving Average (EMA) at $3,134, the 100-day EMA at $3,262, and the 200-day EMA at $3,321.

As for XRP, the MACD indicator remains below the signal line on the daily chart, confirming the remittance token is trapped in bearish momentum. The histogram bars, which are expanding below the zero line, may prompt investors to reduce exposure. The area around $1.84 marks the next key support, with further losses likely to extend to April’s low at $1.61.

Meanwhile, the $1.90 support level remains critical for XRP to resume recovery and reclaim the $2.00 psychological threshold. Beyond this range, the 50-day EMA caps the upside at $2.05, the 100-day EMA at $2.17 and the 200-day EMA at $2.30.