XRP and Ethereum Pullback Incoming? Why Altcoin Bulls Should Watch Closely

Over the past several days, altcoins have been on a tear, with major names like Ethereum (ETH), XRP, and Solana breaking through key resistance zones

Several major altcoins have broken out of lengthy resistance zones, catching the attention of traders. However, one popular crypto analyst is cautioning that a short-term pullback could be in sight.

Crypto analyst Josh, known for his YouTube channel “Crypto World” (which boasts over 300,000 subscribers), just dropped a fresh update.

According to Josh, multiple crypto assets are showing signs of being overbought, particularly on shorter timeframes. For Ethereum (ETH) and XRP, he highlighted bearish divergences and resistance levels that the price has struggled to overcome.

ETH price could use a breather as it approaches major resistance at $2,700 to $2,800. A slight pullback from here could be expected, which could involve either sideways consolidation or a minor dip.

As for XRP price, it has just invalidated a bearish divergence that spanned several months and is aiming for a breakout above the $2.46 to $2.58 zone, which would be a significant move. However, the breakout isn’t fully confirmed yet. A failure to close above that resistance could lead to a short-term pullback.

Despite the upcoming pullback, bulls shouldn’t panic.

This type of price action is common and even beneficial during uptrends. When the RSI becomes overbought or the price encounters strong resistance, a small setback can help prepare the stage for more substantial gains later on.

Key takeaways from the analysis:

Despite the near-term caution, the bigger picture remains bullish. The stock market is showing strength, Bitcoin’s weekly MACD has just turned bullish, and higher timeframes for many altcoins still indicate an uptrend.

A confirmed breakout for XRP could propel it to higher gains, while Ethereum getting above the golden pocket could open the door for a move toward $3,250 and beyond.

As the crypto market continues its ascent, traders will want to be aware of this potential pullback and any opportunities it might present.