Is Bitcoin Falling After Its ATH? XRP and Solana Gear Up for Major Moves

Bitcoin’s latest record high near $112,000 has sparked excitement across the market. Yet, this leading cryptocurrency seems to be showing signs of fatigue, mirroring its rapid increase, hinting at a potential reversal on the daily chart. The extended upper shadows on recent candlesticks suggest resistance at higher levels.

Currently, the price has dropped below $110,000 and trading volume is decreasing, suggesting a potential deeper correction might be on the horizon. This prediction stems from the Relative Strength Index (RSI) trending downwards from overbought levels above 70. If Bitcoin falls to the $102,000 breakout point, which could happen if it breaks the $107,000-$108,000 support, this bearish momentum may intensify further. Moreover, a significant macroeconomic development adds technical risk to this scenario.

On June 1, 2025, it’s planned that a 50% tariff on goods imported from the EU will be enforced. This move is intended to tackle claimed trade disparities and could lead to retaliatory economic actions by EU nations. This raises apprehension about global investment assets like cryptocurrency and suggests potential outflow of capital from unsteady positions.

In other words, a trade war could potentially decrease liquidity and dampen institutional interest in this scenario. Bitcoin might not escape geopolitical turmoil as investors might opt for safer investments or if traditional markets experience instability. Interestingly, due to its speculative surge at present, it could be more prone to a significant price drop.

In simpler terms, a sharp decline might be initiated as a downward trend weakens, accompanied by decreasing trading volume and escalating trade-related stress in macroeconomics. Traders are advised to keep a close eye on the $102,000 mark since a sudden drop could potentially bring an end to the celebration following the All-Time High (ATH) if it’s breached.

XRP prepares for fight

As Bitcoin garners more attention and expands into various sectors, XRP appears to be struggling to catch up, not quite matching the overall enthusiasm driving the cryptocurrency sector. While the price of XRP has technically reclaimed its crucial moving averages and broken free from its downward trend, this progress has slowed significantly, especially when compared to Bitcoin’s impressive surge.

Despite a slightly weakened bullish trend, XRP is currently hovering around $2.45 and has created a temporary support area between $2.30 and $2.35. Although the price has surpassed its 100-day and 200-day moving averages, it remains volatile and cautious. The Relative Strength Index (RSI) is hovering near neutral, suggesting no immediate signs of a strong price surge. Additionally, recent volume levels do not seem to support a long-term upward trend.

One significant factor causing difficulties for XRP is the expanding control of Bitcoin in the cryptocurrency market. As Bitcoin’s influence strengthens, other digital currencies tend to lose value. During periods when Bitcoin has high dominance, it often directs capital flows within the cryptocurrency sector, leaving coins like XRP struggling to attract investments. This dynamic is likely why XRP has struggled to maintain gains after a breakout while Bitcoin effortlessly explores new price territories around $111,000. The entire altcoin market experiences pressure due to this trend.

Many Layer 1s and DeFi tokens are struggling to maintain momentum or gain popularity right now. Due to regulatory issues and unstable on-chain data, XRP is not currently a leading candidate in this risk-taking phase, as Bitcoin’s dominance suppresses the alt season storyline. Until Bitcoin stabilizes and its dominance decreases, XRP may continue to lag behind. For the moment, XRP is not actively participating in the bull market festivities, but it could join in with a strong increase in volume and a return above $2.60.

Solana can smell $200

As I analyze the current market trends, it’s undeniable that Solana’s price surge to $186 is evident of a renewed momentum. Notably, this figure nears the psychologically significant $200 mark, and if conditions align correctly, technical indicators are starting to hint at potential signals for further growth. Most recently, the asset has broken out of a short-term consolidation pattern, underscoring the local uptrend’s strength.

When the 26-day Exponential Moving Average (EMA) rises above several important moving averages, like the 50 and 100 EMAs, it’s a particularly noteworthy event. Although it doesn’t fit the traditional definition of a “golden cross,” this crossover is still a strong indicator of increasing momentum in the local market. It shows short-term strength and increased bullish sentiment, potentially setting the stage for an extended rally that could push the price up to $200 over the long term.

Despite a positive short-term perspective, a broader view carries a note of caution due to some factors. For instance, the 200 Exponential Moving Average (EMA) along with other long-term moving averages remain significantly lower than the current market activity. The bullish trend will likely remain contained within its local boundaries until these trailing indicators reverse direction and begin to catch up with the current price level. Furthermore, volume trends are suggesting a potential breakout.

If the ongoing surge in Solana continues, it may embark on a sustained growth spree. Reaching $200 might be achievable in the near future, but whether Solana can hold its ground above this level will depend on broader market support catching up. For now, traders should exercise caution and not jump into a move that is still developing. It’s essential to keep an eye on trading volume and trend confirmation before making any decisions.

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2025-05-24 03:16