Crypto Markets Face Bearish Headwinds

The cryptocurrency market is currently navigating a period of intense bearish pressure, with key altcoins showing signs of significant decline. XRP, a major player, has been unable to sustain upward momentum, instead initiating a fresh decline below critical support levels. Technical indicators for XRP/USD reveal a bearish trend line forming, with the asset at risk of further losses if it fails to clear the $2.30 resistance zone. Price targets suggest potential for further dips towards $2.00 or even $1.850 if current support levels do not hold, although minor corrections could occur if $2.150 is maintained.

Beyond XRP, the broader altcoin market is showing alarming signs of an impending 'winter.' On-chain data from Sentora highlights a sharp drop in activity for both Ethereum (ETH) and Solana (SOL). Ethereum's active addresses have fallen by approximately 17% from their peak in late July, indicating 'weaker on-chain demand' reminiscent of past bear markets. Solana, despite its previous outperformance, has seen its active users drop by about 30% in Q3 2025 (as reported), suggesting a significant cooling of momentum.

Meme coins have been particularly hard hit, with Dogecoin (DOGE) experiencing a slight decrease in active addresses, while Pepe (PEPE) has suffered a dramatic 85% drawdown. This rapid decline underscores the volatility and speculative nature of these assets, as user bases can quickly evaporate during market downturns. The trend of decreasing DeFi trading volume further compounds the bearish outlook, leading analysts to question whether the altcoin sector has already entered a prolonged period of slowdown, with data echoing past market cycles.