XRP: Not out of the woods yet
XRP, the payments-focused cryptocurrency, climbed about 11% on Thursday after traders cited a breakout from a bullish flag pattern that hints at renewed upside momentum. Yet the rally still hasn’t cleared a critical hurdle at $3.65, where a bearish tweezer top formed last month.
The tweezer top, a classic reversal signal, occurs when two candles reach the same high, signaling persistent selling pressure at that level. If XRP can push past $3.65, the bearish pattern would be invalidated and bulls could attempt to extend the move higher.
On-chain data adds a note of caution. The Net Unrealized Profit/Loss (NUPL) for XRP sits near elevated levels not seen since the 2021 peak, with levels comparable to those seen in 2018. Analysts at Alphractal warned that high unrealized profits often precede distribution phases and price corrections, suggesting holders may be inclined to take profits at current prices.
Key levels to watch:
– Resistance: $3.38, $3.65, $4.00
– Support: $2.99, $2.72, $2.65
Bitcoin: BTC awaits breakout
Bitcoin’s recent pullback has taken the shape of a descending channel within its longer uptrend, a pattern that’s often labeled a “bull breather.” The bounce off the 50-day simple moving average reinforces the idea that consolidation remains constructive and the path of least resistance is still upward in the bigger picture.
A decisive breakout from the descending channel would signal a continuation of the uptrend, potentially targeting fresh highs beyond $123,000. Conversely, a break below the May high of $111,965 could open the door to a deeper slide toward the $100,000 region.
Key levels to watch:
– Resistance: $120,000, $122,056, $123,181
– Support: $111,965, $104,562, $100,000
Ether: Major breakout
Ether has surged above $4,200, levels not seen in four years, and has broken out of a long-standing symmetrical triangle that had contained price since the all-time high in late 2021. This breakout is interpreted as a strong bullish signal, suggesting upside momentum could continue as the market shifts into a renewed uptrend.
What this means for traders and investors
– XRP remains at a critical crossroads. A clear move above $3.65 would remove a major overhang, but the presence of high unrealized profits and potential distribution implies caution. If XRP clears the $4.00 resistance, the upside trajectory could gain traction; if not, a pullback toward the lower support zone remains a risk.
– Bitcoin appears poised for continuation, but traders should await a decisive breakout from the current channel. A sustained move above the $123,000 region could attract new buyers, while a slide below $112,000 would raise the likelihood of a deeper correction toward $100,000.
– Ether’s breakout reinforces broader alt-market optimism. If the momentum holds, Ether could lead further rallies across the market, helped by the shift away from consolidation into a more active upside phase.
A hopeful note
The trio of assets shows a mix of caution and opportunity. Ether’s clear breakout provides a bullish sign for liquidity and new momentum, while XRP and BTC offer important tests that, if resolved in the favorable direction, could unlock meaningful upside. As always, traders should monitor the key levels closely and look for confirmation signals before committing sizable positions.
Summary
– XRP faces a vital hurdle at $3.65 after a Friday rally; a breakout above this level could renew upside, while high unrealized profits suggest potential selling pressure ahead.
– Bitcoin is in a consolidating bull phase within a descending channel; a breakout above roughly $123,000 could resume the uptrend, with $100,000 as a potential downside target if breached.
– Ether has broken out of a symmetrical triangle and pushed past $4,200, signaling strong bullish momentum and the possibility of further gains.