Key Takeaways:
Bitcoin (BTC) drops over 5% from recent ATH, eyes key support at $111,960
XRP futures open interest hits all-time high, bulls defend key $2.81 support
Ethereum (ETH) remains range-bound in expanding triangle
Solana (SOL) faces rejection at $168, double top hints at bearish risk
Bitcoin: Classic Bull Market Pullback in Progress
After setting a fresh all-time high just above $123,000, Bitcoin has pulled back over 5% in the past 24 hours, currently trading near $116,800. This correction, according to analysts, is a typical bull market retracement — a pause that refreshes — as investors lock in profits.
Historical patterns suggest that markets often revisit prior breakout levels. In BTC’s case, the May 22 high near $111,960 is a critical level to watch. If support holds, bulls may regain momentum and attempt another leg higher.
Technically, Bitcoin remains within its long-term ascending channel on the daily chart. However, on the hourly chart, the cryptocurrency is trading below the Ichimoku cloud — a sign of short-term bearish pressure. Still, the Relative Strength Index (RSI) has dipped below 30, signaling an oversold condition and potential for a near-term bounce.
Adding to the volatility, Bitcoin futures open interest is nearing record highs — currently at 734.82K BTC, just shy of the 744K BTC peak from October 2022. High offshore funding rates (11%) suggest leveraged long positions are crowding in, raising the stakes for both bulls and bears.
Meanwhile, the MOVE index, a metric that tracks U.S. Treasury market volatility, has started rising again — a historically bearish omen for BTC. Since 2024, surges in the MOVE index have often preceded sharp pullbacks in Bitcoin.
AI’s Take: This 5% dip is likely a healthy correction within the bull cycle. A bounce from $111,960 could lead to new ATHs if downward momentum fades.
Resistance: $118K–$123K
Support: $113,688 | $111,965 | $107,823
XRP: Futures Frenzy Signals Strength Despite Pullback
XRP has mirrored Bitcoin’s retracement, falling from the $3 mark to trade around $2.89. Despite this pullback, the token is holding crucial support at $2.81, which aligns with the 100-hour SMA and the Ichimoku cloud.
Bullish momentum remains in play, supported by a record-high perpetual futures open interest of 2.74 billion XRP and annualized funding rates near 15%, indicating intense demand for leveraged long exposure.
A sustained hold above $2.81 could pave the way for a retest of $3, and potentially, a breakout towards the 2025 peak of $3.4.
AI’s Take: XRP looks resilient as it holds key technical levels. If $2.81 remains intact, a move back toward $3.4 is likely.
Resistance: $3 | $3.4
Support: $2.81 | $2.60 | $2.38
Ethereum: Bullish Setup Needs Breakout Confirmation
Ethereum is consolidating inside an expanding triangle pattern, showing indecisiveness as it approaches key resistance near $3,067. The daily stochastic oscillator is flashing overbought, which could limit immediate upside.
Still, ETH remains comfortably above the daily Ichimoku cloud, with short-term moving averages aligned to the upside — a sign of underlying bullish structure.
Options traders are eyeing a move toward $3,400, but without a confirmed breakout, sideways consolidation seems likely in the near term.
AI’s Take: Ethereum’s momentum is stretched; a breakout above $3,067 is needed for a move toward $3,400+.
Resistance: $3,067 | $3,500 | $4,000
Support: $2,905 | $2,880 | $2,739
Solana: Bulls Must Break $168 to Avoid Breakdown
Solana has printed a double top near $168, which now acts as a stiff resistance. Despite earlier bullish setups, buyers have failed twice to push through this level, as shown by long upper wicks on recent candles.
The key downside level to watch is $157, the neckline of the double top. A break below that could lead to a sharp drop toward $146, based on the pattern’s measured move.
AI’s Take: Bulls must reclaim $168 soon. If not, a breakdown below $157 could trigger losses to $146.
Resistance: $168 | $180 | $200
Support: $157 | $145 | $125
Conclusion: Volatility Returns as Bulls Take a Breather
As open interest surges across BTC and XRP, the crypto market is entering a high-volatility phase. While short-term charts reflect corrections, broader bullish structures remain intact. Key support levels — especially for BTC at $111,960 and XRP at $2.81 — will determine if this is just a healthy pause or the start of a deeper retracement.
Stay alert: funding rates, volatility indices, and price structure are pointing toward an imminent breakout — in either direction.
