Why is Crypto Crashing Today? XRP News, Bitcoin Price Today, Tesla Stock Earnings and More

Bitcoin dominance has likely entered wave (4) to the upside, signaling a potential shift in momentum. Analysts are watching closely for a retest of the descending trendline from below, which would serve as a strong bullish confirmation. However, to sustain downward pressure on altcoins and preserve the broader market structure, BTC dominance must remain below the critical 62.99% resistance level. A breakout above that could invalidate the bearish outlook and trigger further upside in Bitcoin’s market share, potentially delaying the long-awaited altcoin season investors have been anticipating.

A sudden market pullback wiped out nearly $735 million in crypto futures, with bulls suffering the most. Ethereum traders saw the largest losses at $152.78M, followed by XRP at $88.58M—both surpassing Bitcoin’s $65.29M in liquidations, per CoinGlass. The steep losses came as leveraged altcoin traders were caught off guard amid mild price drops. Over $625M in long positions were liquidated, highlighting panic exits and profit-taking near resistance. ETH dropped 3.6% to $3,540, while XRP plunged 6% to $3.25. Analysts say high leverage and lack of a clear catalyst intensified the selloff across major tokens.

The crypto market is in correction mode midweek following Bitcoin’s recent all-time high. BTC has slipped below the $120K mark, currently trading near $118K, with Ethereum, XRP, and Solana also breaking key support levels. Analysts point to widespread profit-taking by retail traders and whales as the primary cause, increasing selling pressure across top assets. Network profit/loss data confirms this trend, showing significant realized profits for BTC, ETH, and XRP since May. Meanwhile, institutional interest remains strong, keeping long-term sentiment intact. The altcoin season index is at 49—suggesting a possible shift in momentum toward altcoins is on the horizon.

While overall crypto trade volumes remain below yearly highs, liquidity for major altcoins is hitting new records. Ethereum’s 1% market depth, an indicator of liquidity, has reached its highest level in 2025, signaling stronger buying and selling support. XRP is also making headlines with a record-breaking move backed by a robust order book. This surge in liquidity suggests increased market confidence and deeper trading activity, even as volumes remain subdued. Analysts view this as a bullish signal, hinting at possible price stability or growth ahead for ETH and XRP.