A surge in oil prices, coupled with Bitcoin slipping below the $68,000 mark, has rattled the crypto market. Major altcoins SOL, XRP, and AVAX face heightened downside risk as technical supports crumble.
SOL Loses Crucial $88 Support
Solana, the second-largest smart contract platform behind Ethereum in the RWA sector, has seen institutional demand persist—many firms view sub-$100 SOL as a bargain through ETPs and ETFs. However, to sustain a rally, SOL needed to hold above the $88 level. With BTC sliding, SOL has lost that support, exposing it to near-term volatility.
The dip in early February sent SOL to prices unseen in over 770 days, yet attempts to break $97 failed. That level was a focal point in 2023; once broken, it fueled a run toward the all-time high. A bullish scenario now requires reclaiming $123. If the broader downturn accelerates, supports at $77 and $74 come into play, with a breakdown potentially targeting the $58–$45 zone.
XRP Stalls; $1.43 Is the Key
Late 2024 saw XRP rally nearly 300% after SEC Chair Gary Gensler announced his departure. But profit-taking and altcoin weakness since July have produced a series of lower highs. Persistent closes below descending resistance dragged XRP toward the $1 support, with momentum fragile.
Market strategists note that $1.43 has been a pivotal medium- to long-term level throughout 2023 and the current uptrend. If buyers reclaim it over the weekend, a push toward $1.67 becomes plausible. However, Bitcoin's uncertain outlook and fresh geopolitical risks (Iran–US tensions) leave room for a drop to $1.25.
AVAX Battles Liquidity Crunch, Double-Digit Inflation
Avalanche's ecosystem growth has lagged behind rivals like Solana, while the altcoin sector suffers from declining liquidity and double-digit token inflation. AVAX's downtrend has been steeper, plunging toward 2023 lows within weeks. A daily close below $8.62 would mark a critical breakdown, and weekend volatility could test that floor. If it fails, AVAX risks sliding to $6. Conversely, a sentiment shift would first target $12.41 as the base for a reversal.
With oil prices adding macro uncertainty, the short-term fate of these altcoins hinges heavily on whether Bitcoin can stabilize above $68,000. Traders should watch for flash crashes amid thinning liquidity.