Market Recovery Signals Emerging: Bitcoin, Ethereum, XRP Rally from Support Levels as Liquidations Cool

After a brutal week of forced selling, three major cryptocurrencies are regaining ground as market participants reassess positioning. Bitcoin has rebounded to $87,700 following a devastating 20% drawdown from $106,453, while Ethereum and XRP have similarly stabilized above critical support zones. The key question for traders: are these bounces early signs of accumulation, or merely fleeting relief rallies before deeper selling resumes?

Bitcoin’s Path Forward: Can the $90,000 Barrier Hold?

The story of Bitcoin’s past two weeks is one of capitulation and recovery. Starting from a November 11 peak above $106K, BTC experienced relentless selling pressure, collapsing to $80,600 by Friday. Yet weekend reversal showed enough buying interest to push price above $86,830, setting up Monday’s current trading levels near $87,700 (latest: $87.96K).

The psychological significance of $90,000 cannot be overstated. This round-number resistance, previously respected as support, now represents the true test for bullish sentiment. A reclaim would demonstrate that the recent drawdown was corrective rather than trend-reversing—a crucial distinction for medium-term holders.

From a technical standpoint, momentum indicators suggest exhaustion rather than panic. Bitcoin’s 30-level RSI reading signals that aggressive selling has run its course; bears have depleted ammunition, and profit-taking is beginning to give way to accumulation. Oversold conditions historically precede local bottoms, though they offer no guarantee of sustained reversals.

The downside remains equally perilous. Should momentum falter below $87,000, the $80,000 level becomes the next critical battleground. A convincing break of that support would force the market to reconsider whether this entire rally cycle remains intact or if a structural regime shift has commenced.

Ethereum’s Defense at $2,749: A Fibonacci Lifeline

Ethereum’s decline was steeper in percentage terms—an 18% drop to $2,623 over eight days. However, the market drew a decisive line in the sand over the weekend: price bounced precisely from the 61.8% Fibonacci retracement at $2,749, a level monitored by swing traders worldwide.

This defense has granted ETH breathing room. Trading above $2,840 by Monday (current: $2.96K), the asset has reclaimed some distance from Friday’s lows. The $2,749–$2,800 support cluster remains the line of defense; as long as it holds on a closing basis, the path of least resistance targets daily resistance near $3,017.

Similar to Bitcoin, Ethereum’s RSI is climbing out of oversold territory—now suggesting that cascading liquidations are subsiding. The shift from one-sided selling to more balanced price action indicates that extreme fear is moderating. A sustained move above overhead resistance would confirm early-stage structural recovery rather than a temporary bounce.

However, if ETH cannot maintain its footing, the $2,749 support transforms into formidable resistance. In volatile environments, broken supports often act as future caps on upside, preventing rapid recovery and frustrating bullish traders.

XRP Stabilization: What Top Holders Are Watching

XRP endured the most turbulent action, declining 19% from its 50-day EMA rejection at $2.38 down to $1.82. Yet a crucial development emerged over the weekend: price held firm at the $1.96 daily support level, suggesting that bottom-fishing buyers are emerging.

By Monday, XRP traded above $2.08 (currently: $1.87), with sellers stepping aside following the sharp sell-off. If recovery momentum persists, the next target is the $2.35 resistance band, sitting just below the 50-day EMA.

Understanding XRP’s positioning dynamics matters here: top XRP holders by percentage remain strategically important. Institutional and whale-level accumulation at these depressed levels signals conviction that further downside may be limited. The RSI at 41 reflects a market exiting “capitulation mode”—neutral territory where positioning and order flow matter more than headline news.

The Friday low of $1.82 now serves as the invalidation level. A breakdown below that threshold would erase the stabilization narrative, confirming that weekend’s support test was merely a pause in an unfinished downtrend.

The Broader Narrative: Exhaustion Over Capitulation

Across all three assets, the technical signals point toward one conclusion: aggressive selling pressure is exhausting itself. RSI indicators climbing out of oversized territory, support levels holding firm, and reversal patterns forming on daily charts all suggest the most intense phase of margin liquidations has passed.

However, sentiment remains fragile. Any relief rally faces immediate overhead supply from participants trapped during last week’s correction—traders desperate to exit at breakeven or minimal losses. This trapped supply ceiling will prove critical in determining whether these bounces represent genuine accumulation or merely the final shakeout before another leg lower.

The coming 48 hours will prove decisive. Sustained closes above $87,700 (BTC), $2,800 (ETH), and $2.08 (XRP) would begin to validate recovery narratives. Conversely, fresh breaks of recent lows would confirm that this market remains in active downtrend mode, with further capitulation likely.