Crypto’s December Gauntlet: Bulls Hold the Line, but Bears Smell Blood
The crypto market is known for its explosive moves, but volatility comes with a price. Tuesday’s crash saw altcoins bleeding heavily while Bitcoin held its ground, dipping only to $94.3K before buyers stepped in. But resilience doesn’t equal immunity—macro factors are looming large over the market.
The U.S. Dollar Index (DXY) has been strengthening, closing Tuesday at 106.38 (+0.22%), and Wednesday’s CPI report could set the tone for next week’s FOMC interest rate decision. With geopolitical uncertainties bubbling under the surface and fears of economic slowdowns still haunting investors, this is no time for complacency. Bitcoin ($BTC) sits at a crossroads, and the next moves in the market may decide whether bulls regain control or a deeper correction unfolds.
Source: coinmarketcap.com
In this article, we’ll revisit the key levels and scenarios from my previous CryptoDailypieces, examine how Bitcoin and top altcoins like $XRP, Solana, and Dogecoin have performed during this turbulent week, and map out what to watch for in the days ahead.
$XRP: Resilience Hinges on $1.91 Support
XRP has been a focal point of the market, riding high from its parabolic rally to $2.91, only to crash 34.5% to a low of $1.91 during Monday’s flash crash. This low perfectly aligned with the Golden Pocket (0.618 Fib) and a critical Fair Value Gap ($1.96–$2.20), providing a high-confluence area for institutional buyers to step in.
Currently, XRP has rebounded to $2.38, reclaiming the 0.382 Fib retracement and suggesting a potential recovery toward $2.50–$2.65. However, the broader trend hinges on holding $1.91 as support, with a stop loss below $1.50 to account for volatility. If XRP loses these levels, a drop to $1.28–$1.29 (0.786 Fib), a deep liquidity zone, becomes the next likely target.
With XRP only retracing 34.5% from its yearly highs, this correction appears lightweight—so far. For bulls, reclaiming $2.65+ (higher high) is key to resuming its uptrend, while BTC’s stability will play a crucial role in its trajectory.
$SOL: Golden Pocket Holds the Line
Solana continues to show relative strength, with Tuesday’s crash bringing it down to $203, just above the Golden Pocket ($198–$200). This level, highlighted in the article, remains critical for Solana’s bullish structure.
Despite the dip, Solana has only retraced 23% from its yearly high (and the new ATH) of $264, a minor correction in the bigger picture. The current price action sees SOL trading at $215, attempting to reclaim its 0.382 Fib retracement at $221. A break above $237—a critical resistance zone and former ATH level from March—would set the stage for a retest of $264.
However, failure to hold above $198 could see Solana dropping to the $181–$182 re-buy zone (0.786 Fib), a deep liquidity area that aligns with November’s accumulation phase. For now, Solana’s resilience hinges on BTC holding the $90K–$91K zone, as any broader market weakness would likely push SOL lower.
$DOGE: Key Rectangle Support Holding (For Now)
Dogecoin’s volatility remains intact, with Tuesday’s crash testing the $0.365–$0.375 Accumulation Zone for the third time. This level held firmly with a significant volume spike, confirming the rectangle pattern ($0.37–$0.48) as a key structure.
DOGE has only corrected 24.5% from its yearly high ($0.48+)… a modest dip compared to most altcoins. However, the breakdown of its ascending channel, combined with resistance at the Golden Pocket ($0.41–$0.425) and the $0.42 horizontal level, adds pressure on bulls to reclaim momentum.
If DOGE loses its rectangle support at $0.365, a sharp drop to the $0.25 liquidity zone becomes likely, especially if BTC revisits $90K or lower. On the flip side, reclaiming $0.42 could reignite momentum toward the rectangle’s upper boundary at $0.48, with the next major target being the breakout zone at $0.60.