Why crypto prices are sliding today: BTC sinks below $121K, XRP crashes 4%

The cryptocurrency market retreated about 2% in the last 24 hours, dropping the total market cap to $4.18 trillion as a wave of profit-taking and overbought signals triggered a broad correction from recent record highs.

The crypto market cooled after last week’s rally, with top coins experiencing sharp but mostly orderly pullbacks.

Bitcoin, Ethereum, and Solana each slipped from historic peaks as traders booked profits, while technical resistance and ETF-driven buying remained focal points.

The mood, however, remains constructive, with analysts noting strong inflows into ETFs, high institutional demand, and solid support at new, higher bases.

Bitcoin dips below $121K

BTC hit a new all-time high above $126,000 before settling near $121,991—a roughly 2% daily loss on the session shown.

This pullback follows a week fueled by spot ETF inflows ($3.2B last week alone) and hedging around US government shutdown risks, both cited as key rally drivers.

According to industry analysts, some cooling was inevitable as the rally “got overheated” and momentum traders locked in gains.

Yet, institutional demand remains strong, and observers believe structural support—like spot ETF participation—should limit further downside.

Ethereum (ETH) below $4,500

Ethereum traded at about $4,477, off 4.5% for the day and underperforming BTC in the pullback, although it posted an impressive 7.8% gain over the past week.

ETH shadowed BTC’s trajectory, lifting on ETF inflows and institutional treasury demand before profit-taking set in.

Ethereum investment products attracted $1.48 billion in net inflows last week, pushing total inflows for 2025 to $13.7 billion — nearly three times last year’s tally, according to CoinShares.

The surge was largely driven by US spot Ethereum ETFs, which accounted for $1.3 billion of the total.

ETH briefly touched a three-week high of $4,755 before easing in early Asian trade on Tuesday, though profit-taking remained limited compared with earlier rallies.

The restrained selling suggests traders remain confident about the continuation of the broader uptrend.

Technically, the 50-day Simple Moving Average (SMA) around $4,100 is the immediate level to watch.

A sustained break below it could expose the 100-day SMA, a key support zone that cushioned major pullbacks in June and September.

Solana (SOL) down 5%

Solana drifted down to $221.66 after a stellar run up to $240 this week, losing about 5% on the day but still outpacing the broader crypto market over the past month.

Solana’s pullback comes after robust revenue generation ($2.85B over 12 months) and structural network improvements, including plans for a major speed-boosting overhaul.

October’s ETF spotlight may give SOL the momentum it needs to enter price discovery, as key deadlines for spot Solana ETF applications approach this week.

XRP crashes 4%

XRP traded at $2.87, down nearly 4% on the day but up over 1% this week.

XRP climbed above $3 earlier before stalling at the resistance $3.07, encountering heavy profit-taking by institutional wallets.

XRP’s volatility is closely tied to ongoing ETF application headlines, with several spot ETF decisions scheduled for mid- to late October.

Analysts say a sustained break above $3.10–$3.30 could trigger a move to $4.00–$4.20 if ETF catalysts deliver as expected.

Fundamental sentiment remains split, with bearish retail traders but continued accumulation near $3, suggesting a contrarian setup.

Top gainers and losers

Among the day’s outperformers, PancakeSwap (CAKE) led the rally with a 14% surge, supported by rising trading volumes and renewed activity in decentralised exchanges.

Sonic (S) advanced 9%, extending its recent momentum, while BNB gained 5% to emerge as the strongest performer among the major cryptocurrencies.

On the other hand, DoubleZero (ZZ) slumped 17%, marking the steepest decline of the session.

Plasma (XPL) dropped 13%, extending its recent slide, while Zcash (ZEC), MYX Finance (MYX), and Ethena (ENA) also traded sharply lower as investors rotated out of smaller, higher-risk tokens amid fading appetite for speculative trades.

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