• Bitcoin price steadies around $121,000 on Wednesday after sliding more than 2.6% the previous day.
• Ethereum closes below the key support at $4,488, with bears targeting the next support at $4,232.
• XRP fails to find support around the previously broken bullish pattern, signaling a further correction ahead.

Bitcoin (BTC) price holds around $121,000 on Wednesday, following a drop the previous day. At the same time, Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and corrected 5% and 4%, respectively, trading below their key support levels, hinting at further downside pressure.

This correction in the top three cryptocurrencies comes amid holders realizing profits. Santiments’ Network Realized Profit/Loss (NPL), which computes a daily network-level Return On Investment (ROI) based on the coin’s on-chain transaction volume. Strong spikes in a coin’s NPL indicate that its holders are, on average, selling their bags at a significant profit. On the other hand, strong dips imply that the coin’s holders are, on average, realizing losses, suggesting panic sell-offs and investor capitulation.

The metric showed a spike on Monday for BTC, ETH and XRP, indicating that holders are, on average, selling their bags at a significant profit and increasing the selling pressure.

NPL chart for BTC, ETH and XRP. Source: Santiment

Bitcoin dips after reaching a record high

Bitcoin reached a new all-time high of $126,199 on Monday after surging more than 10% in the previous week. However, BTC failed to continue its rally and corrected by 2.67% on Tuesday. At the time of writing on Wednesday, BTC hovers around $121,000.

If BTC continues its correction and closes below $120,000, it could extend the decline toward the next daily support level at $116,000.

The Relative Strength Index (RSI) on the daily chart reads 63 after falling from the overbought conditions on Monday, indicating a potential slowdown in bullish momentum and the likelihood of short-term consolidation.

BTC/USDT daily chart

However, if BTC maintains its upward momentum, it could extend the rally toward the record high of $126,199.

Ethereum closes below the $4,488 support level

Ethereum price broke above the daily resistance of $4,488 on Friday, found support around it and rose by 4.5% in the next three days. However, on Tuesday, ETH corrected 5% and closed below the $4,488 level. At the time of writing on Wednesday, it hovers at around $4,491.

If ETH continues its pullback, it could extend the decline toward the next daily support at $4,232.

The RSI on the daily chart reads 54 and points downward toward the neutral level of 50, indicating a slowdown in bullish momentum.

ETH/USDT daily chart

However, if ETH breaks above the $4,488 level and finds support around it, the rally could extend toward the all-time high at $4,956.

XRP fails to find support around the key level

XRP price breaks above the falling wedge pattern (drawn by joining multiple lows and highs with two trendlines since mid-July) on Thursday. However, XRP retested and found support around the upper trendline boundary in the next three days. On Tuesday, XRP corrected nearly 5% and closed below this support level. At the time of writing on Wednesday, it hovers around $2.87.

If XRP continues its correction, it could extend the decline toward the daily support level at $2.72.

XRP/USDT daily chart

However, if XRP recovers, it could extend the rally toward the daily resistance at $3.40.