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Weekend Crypto Crash Looming?

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🚨 Weekend Crypto Crash Looming? 🚨

Weekend Crypto Crash Looming?

As the weekend approaches, the crypto markets are bracing for a potential crash, with derivatives trading metrics suggesting a weakening of buying pressure. Meanwhile, Ripple (XRP) price has rebounded above $2, but its resilience is being tested by the weight of altcoins mirroring Bitcoin‘s resistance to Trade War Triggers.

Ripple (XRP) price holds $2 support as altcoins mirror Bitcoin’s resilience to Trade War Triggers

Like a shipwrecked sailor clinging to a piece of flotsam, Ripple (XRP) price initially plunged to 30-day lows around $1.80 with hours after Trump announced sweeping tariffs during the liberation speech on Friday. But, like a phoenix from the ashes, the momentum swung positive in recent days as BTC holds firm above $82,000 after China retaliatory 34% tariffs on Thursday, reinforcing investor confidence in the crypto markets as a crisis-resistant asset class.

Ripple price rebounded 12.5% since Thursday, rising as high as $2.15 at press time according to CoinMarketCap data. But, like a mirage on the desert highway, this rebound may be nothing more than a mirage, as the weekend’s trading volume is expected to slow down significantly.

As seen above, Ripple price continues to consolidate well-above the $2 mark, mirroring the likes of ETH, BTC and SOL, which have also defended key psychological support levels around $1,800, $80,000 and $110 respectively over the past week. But, like a house of cards, this fragile stability may come crashing down at any moment.

Meanwhile, top-ranked US stocks such as Apple, NVIDIA and Microsoft all recorded 15% losses a piece before the week’s trading closed on Friday. Ah, the irony! The mighty US stocks, brought low by the very same Trade War Triggers that have bolstered the crypto markets.

Derivative Market Analysis: Crypto Buying Pressure Could Slow Down this Weekend

With top-ranked crypto assets including XRP all consolidating around key psychological price points this weekend, it signals market-wide buying support, amid capital inflows from investors exiting stocks amid US trade war tensions. But, like a leaky bucket, this buying pressure may be slowly draining away, leaving the crypto markets vulnerable to a weekend crash.

However, considering that US markets are now closed, the volume of transitional capital flows could slow down significantly until pre-market trading begins. Ah, the sweet taste of inactivity! But, like a ticking time bomb, the derivatives market data is warning of a potential bearish imbalance.

Validating this stance, Coinglass derivatives market data shows evidence of short-term bearish trading signals. The writing is on the wall, folks! The crypto markets are bracing for a crash.

Derivatives data from Coinglass reinforces this stance. Over the past 24 hours, crypto markets saw a total of $110.65 million in liquidations, with long positions accounting for $85.10 million—over 76% of the total. Ah, the sweet taste of liquidation! Bitcoin and Ethereum alone recorded nearly $50 million combined, with BTC traders booking $36.32 million in liquidations, followed by Ethereum at $13.61 million.

The bearish imbalance, especially the outsized long wipeouts in the last 12 hours ($67.11M longs vs $13.48M shorts), points to a rising number of over-leveraged bullish positions being flushed out. Like a game of musical chairs, the crypto markets are playing a game of musical chairs, and the music is about to stop.

This suggests short-term exhaustion in buying momentum, increasing the likelihood of a minor pullback or sideways action through the weekend. Ah, the weekend blues! With high leverage being unwound and external demand on pause, weekend trading may turn defensive with XRP markets and other prominent altcoins.

Strategic altcoin traders would do well to watch for support retests, especially if funding rates begin to flip or volume declines further ahead of Monday’s open. The weekend may be a time for rest, but for crypto traders, it’s a time for vigilance.

XRP Price Forecast: Bulls facing Resistance at $2.20, Amid Weekend Caution

As the week closes on April 5, XRP price forecast charts on TradingView reflect signs of short-term exhaustion following its rebound to $2.15. Like a shipwrecked sailor clinging to a piece of flotsam, the bulls are holding on for dear life, but the bears are closing in.

Despite five consecutive green candles, XRP price remains below the 50-day EMA at $2.21 and the 100-day EMA at $2.28. This reflects supply-side pressure still outweighing momentum, even as bulls attempt a recovery from March’s lows. Ah, the eternal struggle between bulls and bears!

Notably, the 200-day EMA near $1.95 is acting as a key anchor. A breach below this could trigger stop runs and reopen downside risk toward $1.80. The bears are waiting in the wings, ready to pounce.

True Strength Index (TSI) remains in bearish territory at -0.80, yet is flattening, hinting that the selling momentum is decelerating. Volume has weakened across recent sessions, confirming the rally lacks conviction. A clear break above $2.22 would be required to invalidate near-term bearish bias. But, like a mirage on the desert highway, this may be nothing more than a mirage.

Until that happens, XRP remains vulnerable to weekend drawdowns. Bulls must defend $1.95 or risk deeper losses into next week’s open. A close below $2.00 would reassert sellers’ control short-term. The weekend may be a time for rest, but for XRP bulls, it’s a time for vigilance.

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2025-04-06 04:26

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