What to know:
- XRP has experienced more than a 4% decrease, leading losses among major digital currencies as the market stalls following last week’s rally.
- Bitcoin remains above the $104,000 mark, facing a crucial resistance level at $105,000, with analysts predicting a possible market correction.
- The overall market capitalization for cryptocurrencies fell by 2%, settling at $3.3 trillion, while Ethereum and Solana are nearing significant technical thresholds.
XRP’s value has dipped over 4% within the last day, outpacing declines among major cryptocurrencies due to a pause in the broader market movement after a significant rally last week. Bitcoin continues to stay above the $104,000 level, and traders anticipate a gradual climb beyond $105,000, which serves as both psychological and technical resistance.
The total market cap of cryptocurrencies dropped by 2% reaching $3.3 trillion, evidenced by major players like Ethereum (ETH) and Solana (SOL) resting near their 200-day moving averages — an area that might indicate either a consolidation phase or the onset of a temporary pullback.
“Bitcoin has been steadily forming a peak over the past week,” stated Alex Kuptsikevich, Chief Market Analyst at FxPro. “This arrangement usually indicates that a correction is impending, especially when combined with declines in equities and profit-taking in gold.”
The Crypto Fear & Greed Index fell slightly from 73 to 70, remaining in ‘greed’ territory while indicating that the momentum may have diminished.
SignalPlus’s Augustine Fan remarked that the markets could continue to rise unless the equity markets falter, but he cautioned that Bitcoin is likely to face challenges against temporary resistance around $105,000. He mentioned that Ethereum could benefit more in the near term as part of a broader cryptocurrency rally, bolstered by improving inflows and relative strength among altcoins.
Fan reiterated a broader macro shift in capital allocation favoring cryptocurrencies, noting that, “We believe the ‘anti-dollar’ sentiment is more structural this time. Investors are steadily moving towards emerging markets, precious metals, and cryptocurrencies to hedge against geopolitical and currency risks.”
According to K33 Research, the recent Bitcoin rally seems driven by underlying spot market demand rather than excessive leverage. This buying momentum, especially from retail investors and wealth managers in Asia, could bolster a persistent bullish sentiment, despite near-term price movements possibly remaining range-bound.
Nick Ruck of LVRG Research added that the current lull in market activity may originate from caution ahead of upcoming macroeconomic data and concerns regarding the long-term implications of recent trade agreements from the U.S. “The inactivity may reflect expected volatility as future macroeconomic reports approach, alongside investor reactions to inflation fears which previously resulted in decreased consumer spending last month,” indicated Ruck. “Traders remain cautiously optimistic as U.S. trade agreements elevate prices, but apprehensions linger concerning long-term consequences stemming from tariffs after the agreements with leading trading partners are finalized.”
For the moment, the markets are poised just beneath major breakout levels, with a subsequent decisive move likely to reset the overall direction.
