Crypto market shows weak conviction after Friday’s sharp drop

[Redator]

The US-China trade scare has sent a wave of anxiety across all risk-assets, and digital assets rarely avoid such.

Cryptocurrencies got sold off violently at the past week close.

It isn't the first time that such flows happen on a Friday late afternoon, but this one was particularly brutal:

The Crypto total market cap lost close to $1 trillion in value in about an hour and some altcoins printed down about 70% of their value with cascading liquidations.

Since, much of the moves have recovered with conciliatory tones from both US and China, but the overall tone still seems passive/aggressive.

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Total Crypto Market Cap, October 16, 2025 – Source: TradingView

One could point to the fact that after marking a new $4.27 trillion record three days prior, the profit-taking had already started a selling wave.

Some parties might have been informed of the Trump tweet before the bigger move happened?

It would not be the first time – Markets are like that despite regulations trying their best to prevent such practices, but all of this is for now just a theory.

Some suspicious flows had been demarcated before the selloff started however...

Volumes have been holding pretty low since despite the decent recovery, proving how such movement errode market confidence.

We'll look at the charts to see if they provide more details right ahead.

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Daily overview of the Crypto Market, October 16, 2025 – Source: Finviz

Cryptos were up small to start the day but have since started to see some small-scale selling with Ethereum hanging right around $4,000.

Other risk assets like Stocks are up for now – tracking sentiment (and any sudden change to it) will be key once again for daily trading, and expect the same for the time to come!

Let's explore levels for the Crypto Market leaders: BTC, ETH, SOL and XRP.

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Crypto intraday chart analysis

Bitcoin (BTC) 8H Chart

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Bitcoin 8H Chart, October 16, 2025 – Source: TradingView

When looking at the chart, one thing stands out: The Friday afternoon wick at $102,000.

The move was significant and so rapid that prices just printed at these lows before coming right back higher and closing at $114,000.

One thing to notice however is how the June upward trendline has since been broken, with sellers attempting to take control of the price action; an asymmetric double top has formed.

Buyers are protecting the $108,000 to $110,000 support, coming into play as we speak.

Levels of interest for BTC trading:

Support Levels:

• $108,000 to $110,000 previous ATH support zone (testing)
• $106,000 mini-support
• $102,000 Friday afternoon wick
• $100,000 main support at the psychological level

Resistance Levels:

• Current ATH Resistance $124,000 to $126,000
• Current all-time high $126,250
• $120,000 psychological level
• Pivot Zone $115,000 to $117,000

Ethereum (ETH) 8H Chart

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Ethereum 8H Chart, October 16, 2025 – Source: TradingView

Ethereum has been left out of the most recent crypto inflows since reaching a new record high of $4,950 in end-August.

However, the second largest crypto is still holding the $4,000 level and staying there marks volume at 5-year highs, essential for marking its "value" around elevated levels.

Momentum is also stabilizing, as showing in the triangle formation.

Looking back, Ethereum really had been struggling throughout the past few years – Keep track of its ETF inflows to spot incoming demand (or lack thereof) from retail investors as more and more venues are created for traditional money.

Levels to place on your ETH Charts:

Support Levels:

• $4,200 to $4,300 consolidation Zone
• $4,000 to $4,095 Main Long-run Pivot
• $3,900 8H MA 200
• $3,433 Friday lows
• $3,500 Main Support Zone

Resistance Levels:

• $4,200 to $4,300 consolidation Zone
• $4,500 mini-resistance
• $4,700 to $4,950 All-time high resistance zone
• $4,950 Current new All-time highs

A parenthesis on ETH/BTC

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ETH/BTC 8H Chart, October 16, 2025 – Source: TradingView

The ETH/BTC ratio, a proxy for altcoin appetite has corrected since August 22.

Nonetheless, the Friday move and particularly its recovery have marked a decent rebound for bulls.

The most positive outcome for the Crypto market would be a break above the corrective channel.

On the other hand, the bearish case takes further probability on a channel breakdown.

Solana (SOL) 8H Chart

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Solana 8H Chart, October 16, 2025 – Source: TradingView

Solana is selling off quite aggressively after retesting the $210 levels post-crash.

Still evolving within an ascending channel, the key will be to spot if buyers defend the $185 Support to pursue the higher continuation.

The lower bound of the channel is at around $170, after which the price action would be entering a bearish territory.

Levels to keep on your SOL Charts:

Support Levels:

• $185 Momentum Support (testing)
• $170 Friday lows
• $160 August Support
• $150 Psychological Support

Resistance Levels:

• Pivot Zone $200 to $205
• Resistance level $218 to $220
• $235 to $240 mini-resistance and Higher bound of channel
• $250 to $255 main resistance
• $290 to $300 all-time high resistance ($295 ATH)

Ripple (XRP) 8H Chart

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XRP 8H Chart, October 15, 2025 – Source: TradingView

XRP broke the range mentioned in our previous altcoin analysis, providing a less bullish outlook for the 4th largest altcoin – Currently neutral.

Nonethless, buyers are defending the $2.20 to $2.30 support and the pace at which the selloff occurs has slowed down: Prices have consolidated above the descending trendline.

Levels to keep on your XRP Charts:

Support Levels:

• Key support between $2.20 to $2.30 (immediately testing)
• $2.00 psychological level
• $1.60 April 2025 support
• $1.37 Friday wick
• $1.30 to $1.40

Resistance Levels:

• Main Support now Pivot - $2.60 to $2.70
• $3.00 Major Pivot Zone
• $3.10 to $3.20 resistance
• Previous all-time Highs - $3.39
• Current ATH resistance around $3.66

Safe Trades!

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