Due to background accumulation, the market may experience a rapid pullback.
If the current trend continues, the psychological barrier at $2 may not last long, as XRP is once again touching key support levels. After being decisively rejected at the $2.20 resistance level, the asset has entered a downtrend, missing the momentum that previously indicated a stronger breakout. The rejection of XRP occurred near the upper limit of a descending triangle, which typically signals a continuation of bearish momentum unless a significant volume breakout occurs.
From a technical analysis perspective, XRP is hovering above the 100 EMA, showing signs of a slow and weak reversal. However, this rebound lacks conviction; the volume remains weak, and momentum indicators like the RSI are hovering around the neutral area of 45, providing little confidence to bulls. The lack of oversold conditions in the Relative Momentum Index (RMI) indicates that a strong rebound from this level is not supported by any significant bullish divergence.
From a price action perspective, the market is also compressing. Without strong upward momentum, XRP may eventually move towards the 200 EMA, currently trading near the $2 level. The last significant support level that supported XRP during the last pullback is also located at this level, making it more than just a technical target. If XRP falls sharply at this level, it could lead to a more severe pullback phase.
The overall trend remains unstable. Although XRP broke the descending pattern at the beginning of 2025, supporting its long-term bullish structure, recent price movements indicate uncertainty. The inability of this asset to make higher highs and break above $2.20 has weakened bullish confidence in the short term.
Unless market sentiment shifts rapidly, or XRP rebounds to $2.20 with confirmed volume, the $2 level will face serious danger. Traders should closely monitor the interaction between the price and the 200-day moving average (EMA); breaking below the 200-day moving average could lead to greater downward pressure.
Ethereum Shows Accumulation
Numbers are becoming more convincing than headlines; Ethereum may be quietly preparing for a major breakout. Over the past 30 days, ETH has risen by 46%, significantly outperforming Bitcoin in both relative strength and absolute price movements.
An important sign of increasing interest from institutional and retail investors is that the ETH/BTC trading pair has risen by over 30% during the same period, indicating that capital is significantly shifting from Bitcoin to Ethereum. Since the vertical rebound in early May, ETH has maintained its gains, currently trading at around $2,600.
Prices are consolidating within a tightly coiled ascending channel and holding onto support, forming a series of higher lows. Bullish continuation structures typically exhibit this pattern. Due to minimal fluctuation during the consolidation phase, the primary driver of Ethereum's rise seems to be stable and healthy demand rather than speculation.
In the ETH/BTC trading pair, ETH has also significantly broken through notable resistance levels and is currently testing the upper limit of the long-term weekly volatility range. Once the breakout is confirmed, it may signal the beginning of the ETH golden bull market cycle, during which its dominance in the cryptocurrency market will further strengthen.
The market has not exhausted its purchasing power, and volume reflects this. Although there has been a slight decline during the consolidation phase, the volume remains within normal ranges. The Relative Strength Index (RSI) maintains a neutral position around 60, indicating that there is still room for upward movement in the future, but it will not enter the overbought territory. The overall market pattern also supports a bullish outlook. As a decentralized settlement layer, Ethereum is becoming increasingly popular, thanks to the growing use of Ethereum Layer-2 solutions and ongoing discussions about ETFs and enhanced monetary structures after the ETH merge.
Solana Begins to Act
According to the latest market data, Solana is on the edge of a technical cliff, and the downtrend has begun. Both important moving averages that traditionally serve as dynamic support levels—the 50 EMA and 100 EMA—have been officially broken by SOL.
This breakdown is not merely symbolic; it foreshadows a more severe pullback and a weakening of mid-term bullish momentum. The current stock price of SOL is $152, no longer holding the support level of $155-160, which was previously strengthened by the convergence of important moving averages. Breaking below these levels not only negates the recent bullish structure but also turns it into an active resistance area. The psychological barrier at $100, representing a drop of nearly 35% from the current price, now appears to be the next possible support level.
During the decline, there was a slight increase in volume, indicating that this move is not just a fluctuation or a brief pullback, but the beginning of a long-term sell-off. With the downtrend and approaching oversold territory, the Relative Strength Index (RSI) is also showing this change, indicating that selling pressure is increasing. From a technical perspective, breaking below the 100-day moving average (around $158) is especially dangerous.
This line typically acts as the last line of defense before a complete trend reversal. If Solana cannot quickly recover to this level, further declines may occur. Additionally, the macro environment is also unfavorable. With signs of weakness emerging in the larger altcoin market and increasing capital rotation favoring Ethereum and Bitcoin dominance, Solana may fall into a short-term isolated downtrend. If the volume cannot support a significant rebound above $160, the likelihood of a drop to $100 becomes greater.
