Due to background accumulation, the market may experience a rapid pullback.
If the current trend continues, the psychological level of $2 may not last long, as XRP is once again touching critical 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. XRP's rejection occurred near the upper limit of a descending triangle, and unless a significant volume breakout occurs, it typically foreshadows a continuation of the bearish trend.
From a technical analysis perspective, XRP hovers above the 100 EMA, showing signs of a slow and weak reversal. However, this rebound lacks conviction; trading volume remains weak, and momentum indicators like RSI linger around the neutral zone of 45, making it difficult to provide much confidence to bulls. The Relative Strength Index (RMI) lacking oversold conditions suggests that a strong rebound from this level is not supported by any strong bullish divergence.
From the price trend perspective, the market is also compressing. Without strong upward momentum, XRP may eventually move towards the 200 EMA, where the current trading price is close to $2. The last significant support level that held up XRP during the last pullback is also at this level, making it not just a technical target. If XRP collapses at this level, it could lead it into a more severe pullback phase.
The overall trend remains unstable. Although XRP broke out of a descending wedge in early 2025, supporting its long-term bullish structure, recent price movements indicate uncertainty. Since the asset has failed to make higher highs and break through $2.20, bullish confidence is weakened 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 of the price with the 200-day moving average (EMA); if it breaks below the 200-day EMA, it may face greater downward pressure.
Ethereum is seeing increased buying interest.
The numbers are becoming more compelling than the headlines; Ethereum may be quietly preparing for a major breakout. In the past 30 days, ETH has risen by 46%, significantly outperforming Bitcoin in both relative strength and absolute price trends. An important indicator of growing interest from both institutional and retail investors is that the ETH/BTC trading pair has risen over 30% during the same period, indicating a significant capital shift from Bitcoin to Ethereum. Since the vertical rebound in early May, ETH has maintained its gains, with the current trading price around $2,600.
Prices are consolidating tightly within an ascending channel and holding the support level, forming a series of higher lows. Bullish continuation structures typically present this kind of pattern. Due to the minimal volatility during the consolidation period, the main driving force behind Ethereum's rise seems to be stable healthy demand rather than speculation. In the ETH/BTC trading pair, ETH has also significantly broken through a significant resistance level and is currently testing the upper limit of a long-term weekly volatility range. Once the breakout is confirmed, it may signal the beginning of ETH's golden bull market cycle, during which its dominance in the cryptocurrency market will further strengthen. The market has not exhausted its purchasing power, and trading volume reflects this. Despite a slight decline during the consolidation phase, the volume remains within a normal range. The Relative Strength Index (RSI) stays neutral around 60, indicating that there is still room for upward movement in the future, but it will not enter the overbought zone. The overall market pattern also supports a bullish perspective. 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 post-ETH merge.
Solana begins to move.
According to the latest market data, Solana is on the edge of a technical cliff, and the downtrend has already begun. Two important moving averages—50 EMA and 100 EMA, traditionally seen as dynamic support levels—have both been formally broken by SOL. This break is not merely symbolic; it foreshadows a more severe pullback and a weakening of mid-term bullish momentum. SOL's current stock price is $152, having failed to hold the $155-160 support level, which was previously reinforced by the convergence of significant moving averages. Breaking below these levels not only negates the recent bullish structure but also turns it into an active resistance zone. The psychological level of $100, or a nearly 35% drop from the current price, now appears to be the next possible support level.
Volume has slightly increased during the downtrend, indicating that this move is not merely a fluctuation or a brief pullback, but rather the beginning of a long-term sell-off. With the downtrend and approaching oversold territory, the Relative Strength Index (RSI) also shows this change, indicating that selling pressure is increasing. From a technical perspective, breaking below the 100-day moving average (around $158) is particularly dangerous. This line typically serves as the last line of defense before a complete trend reversal. If Solana cannot quickly recover to this level, a drop may occur. Additionally, the macro environment is also unfavorable. As larger altcoin markets show signs of fatigue and capital rotation increasingly favors Ethereum and Bitcoin's dominance, Solana may find itself in a short-term isolated downtrend. If volume cannot support a significant rebound above $160, the likelihood of a drop to $100 increases.
Focus on the meteors taking you further!!
