Bitcoin Nears $95K While XRP Faces Bearish Pressure

Bitcoin receives robust institutional backing as XRP signals concerning technical patterns despite Ripple's educational initiatives

The crypto market is experiencing high volatility into this week, ahead of the upcoming Federal Reserve interest rate decision, which is expected to influence risk sentiment. Bitcoin is facing resistance around the $95,000 level after retreating from recent highs, while XRP shows warning signs with a bearish technical pattern and declining network activity, contrasting with BNB which is holding key support despite a slight slip.

Crypto Market Hits Highs As Bitcoin Dominance Surges To 70%

The crypto market continues to display interesting trends with high volatility, especially in the face of upcoming events such as the Federal Reserve's interest rate decision, which could influence risk sentiment.

After almost topping $97,900 on May 2 then dragging back 4.3% over three days, Bitcoin BTC/USD has faced opposition close to the $95,000 barrier. BTC has kept support around $94,000 despite this adjustment; multiple positive signals point to ongoing higher potential.

Institutional activity remains especially robust with spot Bitcoin ETFs showing $4.5 billion in net inflows between April 22 and May 2. Strategy disclosed on May 5 the purchase of 1,895 BTC by the U.S. Strategic Bitcoin Reserve as it announced plans to increase capital to fund further Bitcoin purchases to reach $84 billion, while multiple institutions are investing in crypto.

The Chicago Mercantile Exchange (CME) alone has total open interest reaching 669,090 BTC—a 21% rise since March 5, and bitcoin futures markets have also displayed strong institutional interest.

But several factors have slowed Bitcoin's advance toward $100,000, including mounting discontent over the implementation schedule of the U.S. Strategic Bitcoin Reserve law and the failure of like state-level projects. Rising U.S.-China trade tensions have also reduced general market risk appetite; gold outperforms both Bitcoin and the S&P 500 over the past three months, so subverting the story of Bitcoin as an uncorrelated asset.

Despite these challenges, Bitcoin's technical signals and strong institutional support suggest that the coin is well-positioned to perhaps reach new all-time highs in the coming months, especially if global trade relations improve.

XRP Shows Bearish Technical Pattern And Low Network Activity

XRP XRP/USD is facing significant bearish pressure as indicated by a concerning technical pattern on the daily charts and low network activity.

This technical pattern, which usually signals a bearish reversal following a strong uptrend, is characterized by a flat support level and a downward-sloping resistance line. Currently attempting to maintain XRP above the 50-day simple moving average (SMA) at $2.18, the bulls appear to be struggling to exert buying pressure.

If this trend continues and there is a decisive close below the 50-day SMA and the 100-day SMA at $2.06, XRP could fall further towards the psychological support level at around $2.00. If this support fails to hold, XRP price could drop by 45% from present levels and slide towards $1.20 by the end of May.

These concerns are supported by network activity measures, with daily active addresses (DAAs) declining sharply from March's peak of 608,000 to roughly 30,000 in recent weeks, indicating less user engagement and transaction activity.

XRP's 1.17% price decrease over 24 hours has been accompanied by a 30% increase in daily trading volume to $2 billion, which might suggest traders taking profits or repositioning.

On a positive note, the creator of the XRP Ledger, Ripple, has donated $25 million in Ripple USD (RLUSD) to Teach For America and DonorsChoose for education non-profits. According to CEO Brad Garlinghouse, this program aims to address disparities in U.S. education funding and opportunities, which are highlighted by a 2024 Gallup poll showing 55% dissatisfaction with K-12 education quality while highlighting the need to support teachers and students with the necessary resources to succeed.

In total, 10 non-profit organizations will receive contributions from Ripple as part of a broader initiative to support education, economic empowerment, and community engagement.

Solana Foundation Confirms Safety Of Funds After Severe Flaw

Solana Foundation has confirmed that all funds remain safe following the deployment of required repairs after addressing a severe security flaw in Token Unlocks 22 (Token-22) smart contracts, potentially compromising secret tokens.

"We are closely monitoring the situation and working diligently to ensure the swift resolution of any emerging issues. Our priority is to safeguard the Solana ecosystem and maintain its stability," said Solana Foundation in a statement.

The statement went on to highlight the collaborative efforts of the Solana community in identifying and disclosing the vulnerability,