TOP 3 altcoins face strong profit-taking pressure as the market weakens

On Wednesday’s trading session, Monero (XMR), Hyperliquid (HYPE), and Morpho (MORPHO) led the decline as the cryptocurrency market experienced over 1 billion USD liquidated within 24 hours. Technically, these three cryptocurrencies are approaching key support levels after suffering heavy losses on Tuesday.

This correction reflects similar volatility in the US stock market on the same day, as investors face a series of risks: from new tariff threats, pending lawsuits, geopolitical tensions, to sharp fluctuations in the Japanese bond market. All these factors create an unstable backdrop, putting downward pressure on risky assets like cryptocurrencies.

Monero faces risk of dropping below 500 USD

Monero is currently trading around the 500 USD mark on Wednesday, with this psychological support temporarily halting the decline after losing 20% in the previous session. Deeper support levels may appear at the 50-day exponential moving average (EMA) at 484 USD and the 100-day EMA at 432 USD, helping to maintain the overall upward trend.

Daily XMR/USDT chart | Source: TradingView On the daily chart, the MACD indicator shows expanding negative histogram bars as the MACD line crosses below the signal line, with both remaining below zero, indicating selling pressure persists. The RSI stands at 47.55, confirming the upward momentum has cooled but has not yet turned oversold.

On the bullish side, if XMR can close firmly above the 20-day EMA at 542 USD, this coin is likely to continue recovering toward the important psychological level of 600 USD.

( Hyperliquid recovers from a key support level

At the time of writing on Wednesday, Hyperliquid )HYPE### is trading around 21 USD, after a sharp 11% drop on Tuesday. During the day, this token recorded a slight 2% increase, reflecting a short-term rebound after three consecutive sessions of decline, totaling about 18%.

Daily HYPE/USDT chart | Source: TradingView From a technical perspective, the MACD indicator still signals a sell after the bearish crossover on Monday, when both moving averages moved deep into negative territory and the red histograms continued to expand. Meanwhile, the RSI is at 35, oscillating near oversold levels, indicating short-term downward pressure remains.

If HYPE continues to close below the October 10 low at 20.82 USD, the price could test the S1 Pivot Point around 19.70 USD, opening the door to a deeper correction. Conversely, a solid recovery from the 20 USD level would face resistance right at the 20-day EMA, around 24.52 USD.

Morpho short-term recovery after decline

At the time of writing on Wednesday, Morpho has risen slightly by 2% after dropping about 20% over the previous six days. Currently, MORPHO is trading below the 20, 50, and 200-day EMAs, all trending downward, reinforcing the prevailing bearish trend.

The nearest support is recorded at the December 28 low of 1.08 USD. If this level is broken, the decline could continue, heading below 1 USD, with the S1 Pivot Point at 0.94 USD.

Daily MORPHO/USDT chart | Source: TradingView Technical signals also favor the bears: MORPHO’s MACD shows a bearish crossover, with the MACD line approaching zero and the negative histogram expanding, reflecting strong downward momentum. Meanwhile, RSI at 40 indicates room for further decline before reaching oversold territory.

In case MORPHO recovers, the 20-day EMA at 1.26 USD is likely to act as resistance, limiting short-term gains.