Technical indicators of a possible price squeeze are being displayed by XRP as its chart patterns and market dynamics suggest a major move is imminent. The asset is still in a local uptrend, but underlying signals indicate that volatility may soon reappear. The convergence of moving averages is one of the major advancements.

Closer proximity of the 20, 50 and 100-day moving averages produces a compression effect that frequently precedes abrupt breakouts or breakdowns. A time of consolidation, when buyers and sellers are in relative balance, is reflected in this technical squeeze, but this equilibrium rarely endures. Consolidation phases are often characterized by a steady decline in volume. 

Reduced trading activity can be deceptive because it could conceal mounting pressure below the surface. Significant directional moves have frequently followed prolonged periods of low volume in XRP’s price action once volume has returned. A descending trendline formed from recent highs adds to the mix. Upside attempts have been capped thus far by this overhead resistance, drawing a clear line of battle between bulls and bears. 

With strong supporting volume, XRP must decisively break above this descending resistance in order for the uptrend to pick up steam. The local uptrend is unaffected by these technical limitations. It appears that buyers are still defending important support levels and setting up for a possible breakout as higher lows keep forming. 

XRP may swiftly retest the $3.40-$3.50 range if it is able to break through the descending trendline. Failure to break out though could result in a retest of lower supports at $3.06 or even $2.82.  

Dogecoin’s top

Dogecoin’s price movement is forming a possible local double top — one of the least desirable chart patterns for bulls. Following DOGE’s unsuccessful attempt to break through the $0.30 zone in late July and its subsequent attempt in early August, which ended at a lower high close to $0.27-$0.28, the pattern is beginning to take shape. If confirmed by a breakdown below important support, a double top can signal a reversal and frequently signals waning bullish momentum.

Given that several moving averages have converged below the current price, Dogecoin’s support is currently located between $0.21 and $0.22. The 50-day moving average crossing above the 200-day moving average is known as a golden cross, and DOGE is getting close to this bullish event. 

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Nevertheless, a strong follow-through is not supported by the current circumstances. The golden cross may not produce a long-term upward trend because price momentum is slowing, and there has not been a breakout to new highs. Additionally, volume data is not something you would desire right now.  

If selling pressure rises, lower volume might facilitate the traction of downward price movements. There is no strong directional momentum or notable divergence that would suggest an impending breakout, as indicated by the Relative Strength Index (RSI) being flat in the neutral zone around 50-55. The double top pattern is still possible if Dogecoin does not make a strong recovery and move above $0.28. 

Risk factor for Ethereum

After weeks of steady growth, Ethereum recently broke through the $4,400 barrier, continuing its strong bullish run. But even with the price action we are seeing right now, there are warning signals flashing. The Relative Strength Index’s (RSI) bearish divergence is the most notable one.

The RSI has failed to follow the price, forming a lower high in place of the higher high that the price of ETH has printed relative to its previous local peak. Even as the price rises, this divergence frequently indicates that the rally’s momentum is waning. In the past, these trends have come before brief declines or consolidations, particularly following protracted rallies. 

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The recent upward legs of decreasing short-term trading volume adds to the bearish outlook. Even though there are sporadic high volume spikes on the chart, which is a great indication of market activity, the daily volume trend is generally declining. This might suggest that fewer traders are prepared to pursue the rally at the current levels, which would raise the possibility of corrections driven by volatility. 

Regarding volatility, the wide range of ETH’s price fluctuations indicates that the market is still experiencing intense emotional volatility. Risks are increased even though this may present chances for rapid gains, especially if the divergence materializes and leads to a more thorough retracement.

Though traders should stay vigilant, ETH is currently showing strong bullish momentum. The impact of the divergence could be confirmed and a pullback toward the $3,950-$4,000 range could be possible, if there is a break below the short-term supports that are currently in place, especially those in the $4,250-$4,300 range. On the other hand, if bulls are able to maintain volume and disprove the divergence, Ethereum may continue to rise to new heights.

Over the past few weeks, XRP has been on a wild ride, rising from below $2.30 to highs above $3.50. A double top, a well-known bearish chart pattern, could form, but the asset’s recent momentum might be hiding this new technical risk. Based on the current price structure, XRP is making a comeback after a steep decline, after its initial breakout near the $3.50 region. 

The bulls’ continued activity is indicated by the encouraging recovery above $3.20. The catch is that if the price bounces back to the $3.50 region and does not sustain a break, it could print a second peak, the second top of the double top, which could signal a short- or medium-term reversal. 

Also contributing to the worry is the Relative Strength Index (RSI), which is once again getting close to 75. Bullish strength can be indicated by a strong RSI, but the likelihood of exhaustion is increased when high levels are retested without a fresh breakout. Another important element here is volume. 

Despite strong buying support during the rally toward $3.50, the recent ascent has been on somewhat lower volume, which may indicate waning interest. The formation of lower highs and indications of distribution should be closely monitored by traders if XRP does return to $3.50 and stalls or reverses from that level. 

The double top would be confirmed if there were a confirmed break below the neckline between $3.00 and $3.10, which could push XRP back toward support close to the 50-day EMA at $2.60 or even lower.

Ethereum stays up

Ethereum does not appear to be slowing down. Since emerging from its months-long consolidation range in early July, the second-largest cryptocurrency by market capitalization has been riding a relentless bullish wave. With its current price of $3,888, ETH has increased by more than 40% in recent weeks, and the bulls continue to have the upper hand. 

The breakout was flawless: Ethereum moved immediately and with high volume past its prior resistance level of $2,900. The 50-day EMA and that level now serve as a strong support zone. Regaining the 200-day EMA and making a strong move above the $3,300-$3,500 range, which confirmed the trend reversal and attracted aggressive buyers, further increased momentum. 

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The absence of significant drawbacks is the true clutch here. Each consolidation is brief and superficial, indicating high levels of demand. The RSI has reached overbought territory at 82, but historically, ETH can remain extended for a considerable amount of time before a significant correction occurs in strong uptrends like this one.

Psychological resistance is looming close to $4,000, which many traders may consider a short-term target. FOMO-driven inflows would probably be triggered by a clear break above it, which might push Ethereum closer to the $4,400 range, the last local peak observed in late 2021.

Watch the $3,300-$3,500 range as the immediate support on the downside. Buyers will probably intervene at those levels, which also coincide with important moving averages if ETH declines. It appears that Ethereum’s rally will continue unless a macro-level catalyst steps in. Strong momentum encouraging volume and an unquestionably bullish market structure are all present. As of right now, there are no warning signs — just a steady upward trend from a reputable cryptocurrency asset.

Bitcoin’s main target

Bitcoin has formally established $120,000 as a distinct resistance level. Following weeks of consistent rising and numerous retests, the digital gold is still being rejected around this technical and psychological ceiling, creating what seems to be a standard horizontal resistance zone.

In recent weeks price action has shown both growing exhaustion and bullish intent. BTC has failed to close above $120,000 decisively despite several intraday breakouts above that level, indicating the existence of significant sell pressure or profit-taking activity. The comparatively low volume during these attempts raises the possibility that the bulls are running out of immediate fuel to push higher without consolidation.

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It is not necessarily bearish to look at the current consolidation that is just below resistance. Indicators such as the RSI, which is currently at a neutral 61, can be reset by the market as a result of this healthy pause following a robust uptrend. There is still momentum, and moving averages, particularly the 50 and 100-day EMAs, keep sloping upward, providing strong support zones at $115,000 and $111,000, respectively.

If, on the other hand, the market is unable to make a breakthrough, it may retrace further toward the $111,000-$108,000 support band. For the most part, Bitcoin is still structurally bullish. Stronger confirmation is necessary to maintain the rally though — particularly a convincing breakout above $120,000 with supportive volume. 

Momentum Fades: Solana Slips Below Key Moving Averages

According to GemXBT in a recent post, Solana (SOL) is currently trending downward, showing signs of sustained bearish pressure. The price has slipped below critical short-term moving averages such as the 20 MA, 10 MA, and 5 MA, suggesting that sellers are firmly in control for now. This breakdown below key technical levels is often seen as a precursor to further downside, especially when not accompanied by strong bullish reversals.

At present, the immediate key support level is around $175. If this support holds, there could be a chance for a technical bounce, particularly as the RSI is now sitting in the oversold zone. Historically, oversold RSI levels can signal potential reversals or at least a short-term pause in selling pressure. However, traders are watching closely for confirmation before expecting a recovery, especially with resistance looming near $190.

Adding to the bearish picture, the MACD remains below the signal line, reinforcing negative sentiment in the market and downside pressure. Until SOL can reclaim the broken moving averages and flip $190 into support, the technical outlook leans cautious, with the potential for continued volatility.

Key Support Retest: Can $175–$177 Hold The Line?

In a recent post on X, AlgoCats shared insights from the Solana daily chart, highlighting a critical price zone. The analyst pointed out that SOL is currently testing the $175–$177 support range, an area that once served as resistance and is now being re-evaluated as a potential floor. This zone has become a key battleground between bulls and bears in the short term.

AlgoCats also drew attention to a notable upper wick on the latest daily candle, which extended into the $189–$190 region before facing a sharp rejection. This wick suggests heavy selling pressure at those higher levels, likely due to long liquidations and the presence of a significant supply zone. Such price action often reflects a lack of buying strength and the presence of aggressive sellers.

Now, the focus shifts to whether the $175–$177 support can withstand the ongoing bearish momentum. According to AlgoCats, how SOL behaves around this zone will determine the next move. If support holds, a bounce is possible, but if it breaks, the market may see further downside pressure in the near term.

Solana Hits Multi-Week Low

Amid the crypto market pullback, most cryptocurrencies are recording a red Friday, with Bitcoin (BTC) and Ethereum (ETH) momentarily losing some key levels. Solana, one of the cycle’s leading Altcoins, followed the rest of the market and registered a 6% retracement in the daily timeframe.

SOL has seen a significant recovery from its multi-month downtrend, which led the token to hit a 14-month low of $95 during the early April retraces. Over the past month and a half, the cryptocurrency has reclaimed multiple crucial levels, setting the stage for a potential rally.

However, the cryptocurrency has struggled to reclaim the key $180 resistance despite hitting a three-month high of $187 a week ago. A reclaim of this key barrier could push SOL’s price toward the $200 mark, enabling a rally to new highs.

Today’s price action has sent Solana to a 22-day low of $156 after losing its $164-$180 price range and the $160 support zone for the first time since the May 8 breakout.

Trader and analyst Crypto Bullet shared a bearish outlook for Solana, suggesting that the token will underperform for the rest of the year. He highlighted SOL’s trading pair against ETH, noting that the cryptocurrency has been in a rising wedge in the weekly chart since the Q4 2024 rally.

According to the SOL/ETH chart posted by the trader, the cryptocurrency has broken down out of the formation after losing the 0.069 mark. To Crypto Bullet, this signals that “ETH will soon pump way harder than SOL.”

All Eyes On SOL’s Weekly Close

Analyst Rekt Capital pointed out that Solana is attempting to continue Weekly Closing within its Range High resistance, which is key for its long-term rally.

He previously explained that the cryptocurrency re-entered its Post-Halving Re-Accumulation Range after successfully reclaiming the $120 barrier last month and consolidating within the $160-$175 range high.

To the analyst, SOL’s price “needs to continue demonstrating price stability” around this zone, as that is what is “required for SOL to break out from this range into the $200+ levels.”

He affirmed that Solana needs to aim for a retest similar to late 2024, when the cryptocurrency built a base around the Range High ahead of the breakout with multiple weekly closes near the resistance zone, which led to a massive breakout to the $200 mark.

Rekt Capital highlighted that SOL has been successfully retesting this area as support over the past few weeks. However, he warned that cryptocurrency mustn’t close below the current price zone as it would “tease a possible loss of this region as support.”

A drop below this range could lead to a retrace into the Range Low, between the $120-$135 mark. “Price stability at the Orange Range High going forward is thus key here,” he concluded.

As of this writing, Solana trades at $159, an 11.6% decline in the weekly timeframe.

Per the newspaper Chungnyun Ilbo, experts say that US dollar-based stablecoins could have an impact on exchange rates and fiat currencies.

Stablecoin Danger for South Korean Economy?

The comments came at a digital assets-themed meeting of the Korea Economic Association at the FKI Tower Conference Center in Yeouido, Seoul, on May 19.

An expert panel expressed concerns about the possible proliferation of dollar-based stablecoins in South Korea.

The panel argued that stablecoin usage would reduce the volume of won-based payments made by both individuals and corporations in South Korea.

It also claimed that the central Bank of Korea (BOK) could suffer as a result. The BOK, experts said, could lose the ability to manage money supplies or intervene in the foreign exchange markets.

The BOK has made similar statements in recent days, in response to stablecoin-related manifesto pledges from the leading presidential candidate Lee Jae-myung.

KRW Stablecoin on Political Agenda

Lee Jae-myung has pledged to launch a KRW-pegged stablecoin if he is elected President on June 3. Members of his party, the Democratic Party, have also argued that financial regulators – and not the BOK – should have the final say on stablecoin issuance.

But others want to use existing stablecoins in their adoption drives. They claim that failing to adopt is hampering Seoul’s tech competitiveness.

These advocates favor allowing South Korean firms and payments companies to work with high-cap stablecoins like USDT and USDC.

However, Lee Seung-seok, a senior researcher at the Korea Economic Research Institute, warned:

“If dollar-based stablecoins become established as a means of payment in South Korea, this could bring about structural changes in the won/dollar exchange rate determination mechanism. Exchange rates could soar due to a drop in KRW demand and an increase in demand for foreign currency.”

The researcher added that dollar-based stablecoins allow for rapid capital mobility. He added that their decentralized nature “could result in large-scale capital outflows in the event of a crisis.”

Kim Hyo-bong, a former Financial Supervisory Service official, said that Washington and Brussels were both likely to launch stablecoin legislation in 2025. Kim said:

“South Korea should also make sure it acts in line with global trends.”

Kang Tae-soo, a visiting professor at the KAIST Graduate School of Finance and a BOK Monetary Policy Committee member, said that stablecoins offer firms advantages in the payment and settlement spaces.

But Kang concurred that stablecoins were difficult to control. He said they could sow uncertainty in the monetary and foreign exchange policy sectors.

The academic argued that the BOK and the government needed to ensure adoption drives “minimize side effects and maximize advantages.”

However, others warned against the dangers of over-regulation. Namgung Joo-hyun, an Associate Professor of Commercial Law at Sungkyunkwan University, said that the “global digital asset paradigm is rapidly changing.” He said:

“We must take steps to ensure South Korea does not end up isolated due to excessive regulations. We need to establish a financial framework that provides both international consistency and industrial competitiveness.”

A War of Words

Meanwhile, the presidential candidates’ stablecoin war of words continues. During the first televised debate between the four leading candidates for the June 3 poll, Lee Jae-myung reiterated his commitment to launching a KRW-pegged coin.

But EToday reported that Lee Jun-seok, of the rival Reform Party, challenged the frontrunner on the matter.

Lee Jae-myung refuted Lee Jun-seok’s challenge, claiming that “stablecoins based on fiat won collateral are stable.”

However, Lee Jun-seok claimed that there were “no use cases” for any sort of stablecoins that use a peg other than the USD.

He continued, explaining that USDC and USDT, combined, “account for 90% of the stablecoin market.” Lee Jun-seok asked the frontrunner what measures he would take “to prevent the illegal circulation of stablecoin funds, such as remittances to North Korea.”

The post South Korean Experts Warn Seoul of Mounting ‘Stablecoin Danger’ appeared first on Cryptonews.

Analyst and trader Jason Pizzino is issuing a warning on Bitcoin (BTC) as the flagship crypto asset hovers below the all-time high.

In a new strategy session, Pizzino tells his 351,000 YouTube subscribers that Bitcoin is “flirting with danger” after failing to cross above a resistance level located just below the all-time high price of approximately $109,000.

“Now the market’s reversed and come up and this range [between $94,000 to $105,000] seems to be relatively important because for the last four days now Bitcoin has not been able to close above this 50% level [at around $105,000] on the three-day swing chart.”

The widely followed analyst says there are key support levels located below the price of $100,000 that Bitcoin must stay above to maintain its bullish prospects.

“To the downside, you don’t want to see the levels around $91,000, $92,000 up to about $93,500, $94,000… basically the whole of the low $90,000 range. That’s the area that you want to see some support. Breakdowns at this level is just going to prolong any sort of move again to the upside and may in fact weaken the overall move.”

According to Pizzino, Bitcoin will retain its bullish prospects if the crypto king manages to hold above the key support levels over the course of this month.

“But if it can hold out these levels basically over May is where we’re looking for these signals, then possibly the floodgates open.”

Bitcoin is trading at $102,274 at time of writing, about 6% below the all-time high reached in January.

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A trader and analyst who accurately predicted the crypto bottom in November of 2022 is warning that Bitcoin (BTC) may be on the verge of a downtrend.

In a new video, the trader pseudonymously known as DonAlt tells 66,200 subscribers of the TechnicalRoundup YouTube channel that Bitcoin remains at high risk of plummeting in value.

“But we’re still in danger territory. I don’t want to bull talk too much while we are in the area where we can get rejected easily.”

The analyst says Bitcoin may be on the verge of a collapse at current price levels, or the flagship crypto asset may surge briefly to the $90,000 level before entering a downtrend after facing resistance.

“For the bears, you can make an argument that this is as good as it gets of an area. Because, honestly, if this doesn’t get rejected here [in the mid-$80,000s], where is it going to? You can obviously hope for a wick towards $90,000, $91,000. I think that would be the only real acceptable bearish setup to take. But if you are like a convicted bear, like you have conviction in your view and you 100% don’t want to miss out like this is the best area to do it.”

However, the analyst says Bitcoin may remain in a bullish cycle and regain a six-figure value if macroeconomic conditions improve.

“I think the best course of action is a close above $90,000. Like, we start doing this, poke our head back above $90,000 favorably. Obviously, if the macro situation changes alongside with it, I think the next candle is going to be like this [to around $95,000]. And then the next candle is going to be like that [at around $102,000]. And then we’re going to trade at $110,000-$120,000.

So basically, the moment we get back above $90,000, there’s a decent setup, stop loss down here [at $77,000], entry somewhere there [at around $90,000], and then the target above $110,000 into maybe $120,000-$130,000. That’s kind of the best setup that I see for the bulls.”

Bitcoin is trading for $82,788 at time of writing, down 2.1% in the last 24 hours.

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