• XRP price is correcting gains from the $3.080 resistance.
• The price is now trading near $2.9650 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $3.020 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could continue to decline if it stays below the $3.050 zone.

XRP Price Faces Hurdles

XRP price started a downside correction from $3.0850, like Bitcoin and Ethereum. The price traded below the $3.0650 and $3.050 levels.

The bears were able to push the price below $2.980 and the 100-hourly Simple Moving Average. Moreover, there was a spike below the 50% Fib retracement level of the upward move from the $2.824 swing low to the $3.080 high.

The price is now trading below $2.9650 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance at $3.020 on the hourly chart of the XRP/USD pair.

If the bulls protect the $2.920 support, the price could attempt another increase. On the upside, the price might face resistance near the $3.00 level. The first major resistance is near the $3.020 level. A clear move above the $3.020 resistance might send the price toward the $3.080 resistance. Any more gains might send the price toward the $3.120 resistance. The next major hurdle for the bulls might be near $3.150.

More Losses?

If XRP fails to clear the $3.020 resistance zone, it could continue to move down. Initial support on the downside is near the $2.920 level or the 61.8% Fib retracement level of the upward move from the $2.824 swing low to the $3.080 high. The next major support is near the $2.8850 level.

If there is a downside break and a close below the $2.8850 level, the price might continue to decline toward $2.80. The next major support sits near the $2.780 zone, below which the price could gain bearish momentum.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.920 and $2.840.

Major Resistance Levels – $3.020 and $3.080.

As Bitcoin (BTC) stalls near the $113,000 level, Ethereum (ETH) continues to show strength, highlighting a clear divergence in price action between the top two cryptocurrencies by market cap. This contrast has some investors considering a rotation from BTC into ETH to capture the latter’s bullish momentum.

Bitcoin Shows Correction Risks – Is ETH Safe?

According to a CryptoQuant Quicktake post by contributor XWIN Research Japan, on-chain data reveals underlying weakness in BTC price action. By contrast, ETH is displaying notable resilience even as broader crypto market momentum fades.

Related Reading

Currently, Bitcoin’s exchange reserves are hovering around 2.53 million BTC, showing little sign of declining despite recent volatility. For context, BTC has fallen 5.4% over the past week.

Historically, shrinking exchange reserves have indicated BTC moving off exchanges for long-term holding, which reduces near-term sell pressure. This time, however, reserves remain flat, suggesting that a significant portion of BTC supply is still liquid and available for selling.

Flat exchange reserves – combined with BTC’s recent drop from $123,000 to $113,000 – have raised red flags for a possible short-term correction. Meanwhile, ETH’s on-chain dynamics tell a very different story.

Unlike BTC, ETH has consistently recorded large net outflows from exchanges, with multiple spikes exceeding 300,000 ETH in late July and mid-August. XWIN Research Japan explained:

Outflows usually reflect coins moving into cold storage, staking, or institutional custody, tightening the available supply on the open market. ETH’s price has been between $4.150 to $4,400, aligning with the outflow trend and reinforcing a bullish narrative of a potential supply shock.

In short, while BTC is consolidating with lingering sell-side liquidity, ETH’s declining exchange balances signal rising institutional demand. These opposing dynamics suggest capital may be rotating from BTC to ETH.

Different Dynamics Between BTC And ETH

Beyond exchange reserves, other indicators also highlight further downside risk for BTC and growing institutional interest in ETH, reinforcing the market’s preference for Ethereum over Bitcoin.

Related Reading

For instance, noted crypto analyst Xanrox recently offered a dramatic price prediction for BTC, stating that it may crash all the way down to $60,000 – almost a 50% fall from its current market price.

Meanwhile, whales continue to increase their exposure to ETH, growing their holdings at a rapid pace as ETH’s relative strength compared to BTC improves. Yesterday, an Ethereum whale went long on $300 million worth of ETH on-chain.

From a technical perspective as well, things look positive for ETH, with a potential recovery to $4,788 on the cards. At press time, BTC trades at $112,283, down 0.7% in the past 24 hours.

Featured image from Unsplash, charts from CryptoQuant and TradingView.com

Bitcoin’s (BTC) stalling between its recent all-time high and range lows is a sign of investors digesting the movement rather than market weakness.

According to the August 18 Bitfinex Alpha report, BTC surged to a record $123,640 before retreating 5.44% from peak to trough, returning to the lower end of its established trading range.

The pullback followed higher-than-expected US consumer and producer price inflation readings, which tempered risk appetite across asset classes. 

Bitcoin has since entered a consolidation phase, with investors adopting a wait-and-watch approach ahead of potential policy signals. For now, BTC continues to oscillate between its all-time high and local range lows, reflecting a digestion period rather than structural weakness.

The report noted that the likelihood of a Federal Reserve rate-cutting cycle later this year could provide a supportive backdrop for both Bitcoin and Ethereum (ETH). 

Until then, traders should expect range-bound conditions to dominate, with volatility shaped by incoming macroeconomic data.

Altcoins under pressure

In the current environment, altcoins remain more vulnerable than majors. Liquidity is concentrating in Bitcoin and Ethereum, while capital rotation away from higher-beta assets leaves smaller tokens exposed to sharper retracements. 

This pattern is typical in the early stages of bull markets, where institutional inflows first consolidate in BTC and ETH before expanding into the broader market. 

A decisive break above all-time highs in these majors would be the key catalyst for renewed inflows and broader strength.

Ethereum has played a critical role in setting the tone for digital assets. From April lows of $1,386.80, ETH climbed to $4,783.90 on August 14, less than 2% below its all-time high of $4,864.90. The advance reinforced Ethereum’s status as the primary liquidity driver outside Bitcoin, with its performance fuelling renewed speculation in altcoins.

The rotation is visible in Bitcoin Dominance, which has declined from 65% to 59% over the past two months. Historically, such declines in dominance have often coincided with periods of accelerating speculation across alternative assets. 

While majors consolidate, capital continues shifting down the risk curve, a dynamic that may persist until a clear macroeconomic catalyst emerges.

Mentioned in this article

The Chair of the Federal Reserve says financial markets are dealing with a unique set of circumstances that may be contributing to dollar weakness.

In a recent testimony to the US Senate, Powell tells members of the Senate’s banking panel that while the US dollar appears to be doing better, the Fed has yet to formally form an opinion on the matter.

“I would go back to the thought that markets have been digesting an unusually challenging set of circumstances and have reacted the way they reacted. The dollar has kind of stabilized just now, in fact it’s moved back up in the last couple of weeks a bit. There are plenty of people who are still writing that the dollar is still overvalued, we don’t have a view on that of course…

I don’t really have an official view I’d like to share, [but] I think there are possible explanations…one of which is that people still feel the dollar is highly valued, but we’ll see.”

Touching on the subject of tariffs, Powell says markets are in uncharted territory since tariffs have only ever been going down for many decades.

“We’ve been going through a long period where tariffs have been going down. Since World War 2 really, it’s been a process of lowering tariffs globally…

There isn’t a lot of modern learning on that. One of the reasons 1750875178 is so challenging is that we don’t have modern precedent.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Crypto analyst Jamie Coutts says that a breakdown in the US Dollar Index (DXY) could be hinting at coming rallies for Bitcoin (BTC).

In a new interview on the Less Noise More Signal YouTube Channel, Coutts shares a chart that shows the price of Bitcoin overlaid with large down moves – of at least 2.5% or more – in the DXY.

The DXY measures the strength of the USD against a basket of other major foreign currencies weighted by volume and often moves inversely to risk assets like Bitcoin.

According to Coutts, many of the large downward moves in DXY – like the one that happened in late March – have coincided with the beginning of BTC rallies.

“I’m just showing the Bitcoin chart and when these have occurred, which are the yellow icons. And so, on the eight occasions set, we’ve seen this play out 90 days later on all eight occasions – the Bitcoin [price] has been higher on average by about 30%, but anywhere by about 30% to 50% or 60%.

So if this was to play out and the lag between financial conditions and liquidity and asset prices plays out, then, really, we’re sort of looking at May as being a strong month for Bitcoin and potentially a retest of the all-time highs.”

At time of writing, Bitcoin is trading at $85,138, 21% below its all-time high.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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