Following one of the most violent rallies among the major altcoins, XRP now seems to be displaying the falling star candlestick pattern, a crucial technical indicator that frequently precedes short-term reversals. Strong intraday rejection at higher price levels is indicated by the most recent daily candle on XRP’s chart, which is taking the shape of a traditional falling star with a long upper wick, small real body and little-to-no lower shadow.
An extended bullish phase is frequently followed by this formation, which is regarded as a bearish reversal pattern if a red follow-up candle and increasing selling volume are present. Before sellers intervened, forcefully pushing the price back down and removing the tall wick, XRP soared to a local high of about $3.70.
Bulls are losing ground to resurgent sell pressure, which is a sign that the market is having difficulty maintaining euphoric buying. As of press time, XRP is trading at about $3.49, continuing its strong week-to-date gains. However, the Relative Strength Index (RSI) has crossed over into overbought territory, breaking the 88 mark.
This demonstrates the asset’s potential for overheating and its susceptibility to consolidation or a cool-down. Over the past two weeks, XRP has outperformed many of its L1 peers – when viewed from a wider market perspective. Its explosive move has been bolstered by institutional interest and volume spikes, but without structural support, speculative momentum can only drive the price so far.
The market would likely reverse or pull back toward the $3.20 or even $3.00 level. In the upcoming days, XRP should either enter a consolidation phase or correct lower if this falling star candle holds and a bearish session follows. In order to avoid a more significant retracement, bulls will need to protect their technical and psychological support levels.
Ethereum riding up
With a surge above $3,600 and no immediate indications of abating, Ethereum is riding a wave of extreme market euphoria. ETH is emerging as the focal point of the current bull phase on the cryptocurrency market, with a 40.6% daily gain and returns exceeding 150% since April.
Strong technical structure, increasing institutional inflows and regulatory optimism extending from the larger digital asset space have all helped to support the move. The chart shows that ETH has decisively surpassed the psychological $3,000 barrier, validated it as support and then exploded upward.
After a period of close consolidation between $2,800 and $3,100, the move picked up speed and formed a distinct breakout structure. Volume has steadily risen in tandem with price, which is a classic indication of positive momentum. Technical indicators are pushing things to their limits.
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At this moment, the Relative Strength Index (RSI) is approximately 85, indicating that the market is extremely overbought. However assets may remain in overbought territory for a long time in robust bull markets, especially when new capital enters the market. That seems to be the current situation with ETH.
Three important levels are worth monitoring for traders and investors: the reclaimed psychological support of $3,000, the mid-range consolidation breakout zone at $3300 and the immediate resistance at $3,700, which is the candle’s current top. Dip hunters would probably view any decline to the $3,300-$3,000 range as a buying opportunity.
Ethereum is outperforming Bitcoin and other majors due to institutional flows, especially from ETFs’ growth in demand from DeFi protocols and layer-2 adoption. Stronger macroeconomic conditions and increased regulatory clarity have now supported the market rally, giving the current ETH rally more structural support than usual sentiment-driven spikes.
Bitcoin getting exhausted
After its strong surge to $123,000, Bitcoin is now exhibiting signs of exhaustion as the price is reversing to the $118,000 range. Even though Bitcoin is still on a macro upward trajectory, the state of the market and technical indicators point to a correction toward the $110,000 mark that is both likely and possibly healthy.
Bitcoin has confirmed bullish continuation with a strong impulsive move after breaking out of a symmetrical triangle pattern from a chart perspective. Two consecutive rejection candles have formed near resistance, indicating that the price has started to stall after tagging the local high of $123,000. With an RSI of about 68, which is still high but down from the overbought zone, the bullish momentum is slowing down.
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Volume sends a similar message. The last few daily candles indicate waning demand despite the breakout. As the price structure begins to curl, it is more likely that Bitcoin will drop to $110,000 if it breaks out of its current support zone, which is between $117,000 and $115,000. The upper limit of the prior consolidation is also at this level, which may be a retest zone.
According to on-chain data, open interest in futures is still close to all-time highs, indicating high leverage. As a result, if downside volatility rises, the market could be flushed out. A further indication that speculative fervor is abating is the cooling of funding rates. However, a decline to $110,000 is not likely to signal a reversal of the trend.
