The cryptocurrency space shows signs of hesitation after a strong rally last week. XRP slid sharply, dropping more than 4% in 24 hours, marking it as one of the worst performers among major cryptocurrencies. Meanwhile, Bitcoin continues to test a stubborn resistance level near $105,000, struggling to break through despite recent gains.
Edward Frei, financial analyst at Zxperts, notes that the market is in a delicate balance, caught between bullish momentum and the pressure of key technical barriers. His insights reveal what this means for traders watching crypto and the broader implications for asset allocation in the current climate.
Bitcoin’s Price Wall: A Pause in the Rally
Bitcoin has spent the past week hovering just above $104,000, repeatedly bumping against the $105,000 resistance level. This figure is more than just a round number — it carries psychological weight and technical significance. Traders recognize it as a hurdle Bitcoin must clear to continue climbing.
Frei points out, “Resistance levels like these often cause markets to stall or retrace. It’s a test of whether buyers have enough conviction to push through.” He highlights that Bitcoin’s steady formation of a price top could hint at a short-term correction on the horizon.
Adding fuel to this caution, Bitcoin’s upward momentum is not driven by speculative leverage but by spot market demand, particularly from retail investors and Asia-based wealth managers, according to research from K33. This buying is more sustainable, yet it also means prices may move more slowly and face sharper resistance around key points.
XRP’s Sharp Slide: More Than a Market Blip
XRP’s drop by over 4% stands out amid a mostly stagnant market. While Bitcoin holds steady, XRP leads losses, dragging the crypto market cap down by about 2% to $3.3 trillion, based on CoinGecko data.
This decline could signal investor hesitancy shifting capital away from riskier altcoins when Bitcoin faces resistance. Ethereum (ETH) and Solana (SOL) also hover near their 200-day moving averages — a technical marker closely watched for signs of market health. Hovering near these levels often suggests consolidation or a potential pullback.
Augustine Fan, market strategist at SignalPlus, suggests that Ethereum may soon outperform Bitcoin as altcoins gain relative strength. He mentions a broader “anti-dollar” trend encouraging investors to diversify into crypto, emerging markets, and precious metals as protection against geopolitical and currency risks.
Macro Factors Shaping Crypto Sentiment
Behind the price charts, a larger picture unfolds. U.S. trade deals and macroeconomic data loom, causing traders to proceed with caution. Nick Ruck from LVRG Research highlights how recent U.S. trade agreements sparked hopes for economic growth but also brought concerns about the impact of tariffs.
Ruck says, “Investors remain cautiously optimistic as trade deals create new opportunities. However, inflation worries and slower consumer spending keep a lid on exuberance.” This balanced sentiment reflects in crypto’s sideways action as traders await clearer signals from economic reports.
The Market Mood: Fear, Greed, and the Fine Line
The Crypto Fear & Greed Index dipped slightly from 73 to 70, remaining in “greed” territory but showing that momentum has lost steam. This subtle shift mirrors investor uncertainty, especially as Bitcoin stalls and altcoins wobble.
Edward Frei explains that while greed signals can drive prices up quickly, fading momentum warns of profit-taking and corrections. It’s a reminder that markets rarely move in straight lines, especially in a space as volatile as crypto.
What Investors Should Watch Next
The immediate focus lies on Bitcoin’s ability to break through $105,000. Clearing this level with conviction could trigger fresh buying and push the entire crypto market higher. Conversely, failure to hold above this mark may spark a pullback, dragging altcoins lower.
Key data points to track:
- Bitcoin price action near $105,000 resistance
- Ethereum and Solana behavior around their 200-day moving averages
- Upcoming U.S. macroeconomic reports and their impact on market sentiment
- Shifts in the Crypto Fear & Greed Index signal a changing investor mood
Frei suggests that traders should keep an eye on how these elements interact rather than betting solely on one factor. “Crypto markets respond to a blend of technical cues, macro trends, and investor psychology. Being aware of all three provides a clearer picture.”
Final Take: A Market Holding Its Breath
The crypto market currently feels like it’s holding its breath, waiting for a decisive move. Bitcoin’s resistance at $105,000 is a crucial test. Meanwhile, XRP’s sharp slide highlights the fragility beneath recent rallies.
Edward Frei from Zxperts concludes, “The next few days could set the tone for the coming weeks. Investors should prepare for possible short-term pullbacks but stay alert for signs of renewed strength. Diversification and measured exposure remain key strategies amid these shifting tides.”
For those tracking crypto, staying informed about these price levels and broader economic shifts is essential. The market’s path won’t be linear, but with attention to detail, traders can position themselves to respond effectively — whether the next chapter is a rally or a reset.
