I was checking the charts first thing and the red was already spreading. Ethereum sitting under the two-thousand mark, XRP hovering near the one-dollar line, and Pi Network quietly consolidating after a long slide. Then the producer price numbers dropped and the pressure just kept building. Annual wholesale inflation printed at 6.5 percent. That is the highest reading since late 2022. Suddenly the whole market felt heavier.
What The Latest Producer Price Numbers Actually Showed
The monthly figure came in softer than many expected. Producer prices rose 0.3 percent in October after a much stronger revised gain the month before. Economists had looked for something closer to 0.4 percent. On the surface that sounds like a small win. Yet the yearly number still climbed to 6.5 percent, a level not seen since wholesale inflation sat at 7.4 percent more than three years ago.
Core measures told a similar mixed story. Prices excluding food and energy also rose 0.3 percent for the month. A broader version that strips out food, energy and trade services jumped 0.5 percent and sat at 4.9 percent over the past year. Goods prices led the way higher while services moved more modestly. In my view that combination still keeps the Federal Reserve on edge even if the monthly print cooled a touch.
The timing made everything worse for crypto. Selling had already started during Asian hours. By the time the data landed, Bitcoin had already broken below seventy thousand and liquidations across the market were mounting. Roughly 1.23 billion dollars in positions got wiped out, the bulk of them long. Bitcoin alone accounted for hundreds of millions of those forced closes. Spot Bitcoin ETFs had already seen nearly three hundred million dollars leave in a single session earlier in the week, with one large fund carrying most of that outflow.
Ethereum Tests Critical Support After Losing Two Thousand
Ethereum spent most of the session in the nineteen hundreds. One analyst I follow closely marked the zone between 1,900 and 1,940 as the area where buyers might finally step in. She was careful not to call it a bottom just because price touched the level. The four-hour chart kept printing lower highs, which is never a comfortable picture.
Her recovery path requires a clean move back above 2,040 before the structure starts looking healthier. Lose 1,900 with conviction and the next stop sits near 1,840. That is only about five percent further down from the price she was watching, but it would still sting. Another voice on the same day painted a deeper picture. He noted repeated failures of rising channels and put 1,500 on the table if selling pressure refuses to ease. From the levels trading that day, such a move would represent more than a twenty percent drop.
I’m not calling this a bottom just because price touched support.
Liquidation data for Ethereum alone ran into the hundreds of millions, mostly long positions again. Spot Ethereum ETFs also recorded solid outflows on the same day the Bitcoin funds saw heavy redemptions. On-chain activity added another layer of caution. One wallet linked to a foundation sold a few thousand ETH and swapped the proceeds into a stable asset. Nothing catastrophic on its own, yet it fed the sense that larger players were not rushing to buy the dip.
I keep coming back to the lower-high pattern on the shorter time frames. Until that sequence breaks, every bounce feels temporary. The 1,900 zone is the line in the sand for now. Hold it and the market can start talking about recovery. Break it and the deeper targets suddenly look a lot more realistic.
XRP Returns To The Lower Edge Of Its Channel
XRP told a different but equally uncomfortable story. On the three-day chart the token had earlier pushed toward the top of a well-defined channel near 1.55. It failed to clear that resistance and then reversed the entire move. By the time the inflation numbers arrived, price was sitting just above the lower boundary at 0.99.
One chart-focused analyst put it bluntly. The full reversal had already happened. The 0.99 level must hold. Lose it and the next area of interest sits closer to 0.80. That would be nearly twenty percent lower from the channel floor. Intermediate markers on the chart still showed 1.13, 1.29 and 1.40 as potential resistance on any bounce, but those levels feel distant while price hugs the bottom of the range.
What stands out to me is how clean the rejection at the upper boundary was. XRP often moves in these wide channels for long stretches. When it fails at the top and slides all the way back to the bottom, the lower edge becomes the only thing that matters. A few more sessions of weakness and that 0.99 support could start looking fragile.
- Upper channel resistance near 1.55 already rejected
- Current price action testing the 0.99 lower boundary
- Next downside reference sits around 0.80 if support fails
- Intermediate levels at 1.13, 1.29 and 1.40 still act as potential resistance
The broader market mood did not help. With Bitcoin under pressure and the dollar index sitting above 103, risk assets of every kind felt the same headwind. Technology shares had already started selling after fresh corporate headlines, and crypto simply followed.
Pi Network Forms A Falling Wedge Near Multi-Week Lows
Pi Network spent the day consolidating near 0.0696 after an extended downtrend. One analyst pointed to a textbook falling wedge pattern taking shape. Sellers appeared to be losing momentum while buyers continued to defend the lower trend line. The key level he highlighted sits at 0.0735. A break above that mark would open the door toward 0.085 in his view.
That recovery path is still conditional. The wedge has to resolve higher first. Until price clears the upper boundary with volume, the pattern remains just a potential setup rather than a confirmed turn. From the current consolidation area the breakout level is only about five and a half percent away, yet that short distance can feel like a long way when the rest of the market is bleeding.
I have watched similar wedges play out many times. Sometimes they deliver the expected move higher. Other times they simply break lower and continue the prior trend. The difference usually comes down to broader market conditions. Right now those conditions are not exactly friendly to speculative names.
How Liquidations And ETF Flows Amplified The Move
The numbers on forced selling were hard to ignore. Across the entire crypto market more than a billion dollars in positions vanished in a short window. Bitcoin carried the largest share, but Ethereum and other large-cap names contributed meaningfully. Most of the pain hit traders who had stayed long into the weakness.
ETF flows painted a similar picture of caution. Spot Bitcoin products saw consecutive days of redemptions totaling well over a billion dollars across the week. Ethereum funds also recorded three-digit million outflows on one of the heavier sessions. When institutional vehicles are shrinking at the same time leveraged traders are getting stopped out, the selling pressure compounds quickly.
Perhaps the most interesting aspect is how early the weakness started. Crypto had already turned lower during Asian trading, well before the producer price report. The data simply confirmed the caution that was already visible on the charts. In my experience that sequence often produces sharper moves than when the news arrives first and the market reacts later.
What The Inflation Backdrop Means For Crypto Sentiment
Wholesale inflation at 6.5 percent year over year is still elevated by any recent standard. Even though the monthly change cooled, the annual rate sits near levels that previously kept the Fed in tightening mode. Crypto has grown more sensitive to these macro prints over the past couple of years. Higher-for-longer rate expectations tend to pressure risk assets, and digital assets remain firmly in that category.
The dollar strength that accompanied the move only added fuel. When the greenback sits comfortably above 103, overseas capital often finds other places to wait. Technology shares had already started correcting after fresh corporate headlines, and crypto rarely decouples completely during those periods.
Still, the monthly cooling offers a small silver lining. Markets had braced for a stronger print. The fact that prices rose less than expected at least prevented an even more aggressive reaction. Later in the day some of the pressure eased as traders digested the softer monthly figure. Brief relief rallies are common after data that is bad but not as bad as feared. Whether that relief lasts is another question.
Key Levels Traders Are Watching Right Now
Every major name has its own critical zone. For Ethereum the 1,900 area remains the immediate battleground. Hold it and the path toward 2,040 stays open. Lose it and 1,840 becomes the next checkpoint, with the deeper 1,500 scenario still on some radar screens.
XRP lives and dies by the 0.99 channel floor for the moment. A clean break lower opens the door toward 0.80. Any meaningful recovery needs to reclaim intermediate resistance levels before the upper channel boundary even comes back into view.
Pi Network is the purest technical setup of the three. The falling wedge is clear. The 0.0735 breakout level is well defined. Until that threshold is cleared, the pattern remains a work in progress rather than a completed turn.
| Asset | Key Support | Near-Term Target If Broken | Recovery Level |
| Ethereum | 1,900 | 1,840 then 1,500 | Above 2,040 |
| XRP | 0.99 | 0.80 | Above 1.13 then higher |
| Pi Network | Lower wedge line near 0.0696 | Continued decline | Above 0.0735 toward 0.085 |
These levels are not magic. They simply represent the points where the current structure either holds or fails. Markets can always overshoot, especially when liquidations pile up. Still, having clear reference points helps keep the noise in perspective.
Why This Selloff Feels Different From Earlier Corrections
Earlier this year many drawdowns arrived with clear catalysts that resolved relatively quickly. This one feels more tied to the macro backdrop. Producer prices remain elevated on a yearly basis. Rate expectations have not fully shifted. ETF flows flipped from inflows to outflows. Leveraged positioning was still crowded on the long side. When those factors line up, the market often needs more time to find its footing.
I also noticed how quickly the selling spread from Bitcoin into the rest of the complex. Ethereum, XRP and even smaller names like Pi all moved lower in near lockstep during the initial wave. That kind of correlation usually signals risk-off behavior rather than asset-specific stories. When correlation rises, individual technical setups matter less until the broader pressure eases.
One more observation. The on-chain sale of a few thousand ETH by a foundation-linked wallet did not move the market on its own, yet it added to the sense that larger holders were not aggressively defending prices. In quieter periods those kinds of flows often get absorbed. During active selling they can reinforce the existing direction.
Possible Paths From Here
Two broad scenarios stand out. In the first, the softer monthly inflation print gives traders enough confidence to buy the dip at the key support levels. Ethereum holds 1,900, XRP defends 0.99, and Pi Network eventually clears its wedge resistance. Risk appetite returns as the market digests the idea that wholesale inflation may have peaked on a monthly basis even if the yearly rate remains high.
In the second path the yearly inflation figure continues to dominate the conversation. Supports give way one after another. Ethereum slides toward the mid-eighteen hundreds and possibly lower. XRP loses the channel floor and heads for the next measured move. Pi Network breaks its lower trend line and resumes the prior downtrend. Liquidations keep cascading because leverage remains elevated in many corners of the market.
Neither outcome is guaranteed. Markets have a way of surprising even the most carefully drawn maps. What feels clear right now is that the next few sessions will likely decide which of those paths gains traction. Volume, ETF flows and the behavior of the dollar will all matter.
A Few Practical Thoughts For Navigating The Volatility
Position sizing becomes more important when supports are being tested. The difference between a normal correction and a deeper washout often shows up in how far price travels once the first line of defense breaks. Keeping dry powder available has helped me more times than I can count during similar stretches.
Watching the correlation between Bitcoin and the rest of the market also offers useful information. When everything moves together, individual technical setups often wait for the broader tide to turn. Once correlation starts to break down, stock-specific stories regain influence.
Finally, the inflation data itself will keep evolving. One soft monthly print does not erase an elevated yearly rate. Future releases will continue to shape expectations around policy and risk appetite. Crypto remains sensitive to those shifts even as the asset class matures.
Putting The Day In Perspective
November 13 delivered a classic macro-driven session. Producer prices rose less than expected on a monthly basis yet still printed the highest annual reading in years. Crypto had already started lower and simply continued that path once the numbers confirmed the caution. Ethereum, XRP and Pi Network each found themselves testing important technical zones by the close of trading.
The levels themselves are straightforward. Ethereum around 1,900, XRP near 0.99, Pi Network working inside a falling wedge with a clear breakout threshold. How those levels behave over the coming days will tell us more than any single data release. I will be watching volume and the reaction of the larger Bitcoin market especially closely. When the leader stabilizes, the rest of the complex often finds room to breathe. Until then the pressure remains real and the supports remain critical.
Markets rarely move in straight lines. Today felt like one of those sessions where the path of least resistance pointed lower and the inflation backdrop reinforced the direction. Whether the softer monthly figure eventually provides a floor or the elevated yearly rate keeps the pressure on is the question that will shape the next chapter. For now the charts are speaking clearly. The only remaining question is whether buyers show up at the levels that matter.
In the end this was not a story about any single token failing on its own fundamentals. It was a broad risk-off move that swept across the market once wholesale inflation reminded everyone that the higher-price environment has not fully faded. Ethereum, XRP and Pi simply happened to be sitting at technical decision points when that reminder arrived. How they resolve those decision points will determine the tone for the rest of the month.
