The recent sharp decline of the S&P 500, one of the leading indices in the U.S., has heightened expectations for a cautious approach in financial markets. The index recorded its worst performance of the year, and technical data suggests further downward movement could occur throughout the week. This trend is likely to reflect on the cryptocurrency market as well, as past occurrences indicate that significant downturns in American stocks have similarly impacted cryptocurrencies.
S&P 500 Technical Patterns
Experts note that the S&P 500 has developed rising formations and inclined double or triple peak patterns. These formations suggest that prices may catch a weaker trend over time, maintaining a resistance level around 5,800. Identified breakout points are at 5,777 and 5,131, reflecting historical patterns where the index retreated from significant levels.
Cryptocurrency Market and Technical Analyses
The downward signals in the S&P 500 are anticipated to influence leading cryptocurrencies like Bitcoin 
$108,458, Ethereum 
$2,533, and XRP. Market analyses reveal similar formations in the technical charts of these assets, prompting recommendations for investors to closely monitor established resistance and support levels.
In Bitcoin’s daily chart, a double peak formation at the $108,380 level is seen as a risk indicator. However, a potential positive crossover from the MACD indicator could signal upward movement, raising the likelihood of a price recovery.
Ethereum has formed a death cross pattern due to the intersection of the 200-day and 50-day moving averages.
XRP analyses highlight shoulder-head-shoulder signals and dips below the 50-day average. With XRP falling below established critical support levels, the risk of sudden price declines is evaluated. Technical indicators suggest that this asset may trend weaker in the short term.
The overall market uncertainty necessitates close monitoring of technical formations by investors. Assessments in both stock indices and cryptocurrency markets warn that cautious steps are essential. Identified breakout points and support levels serve as important reference points for evaluating potential risks.
