XRP Is at a Pivotal Point in Time as the Larger Cryptocurrency Market Appears to Be Getting Ready

XRP is at a pivotal point in time as the larger cryptocurrency market appears to be getting ready for a possible big move.

XRP is at a pivotal point in time as the broader cryptocurrency market appears to be preparing for a possible large-scale move.

While Bitcoin is holding strong at around $104,000, showing signs of robust accumulation and the potential for another leg up, XRP appears to be lagging, which could be a risky position during a market-wide shift.

From a technical perspective, XRP has broken out of a long-descending wedge formation, usually a bullish reversal pattern. However, the recent pullback toward $2.30 is testing the bulls' resolve despite the breakout pushing the token toward the $2.60 zone.

The 26 EMA at $2.31 and the 50 EMA at $2.25 are crucial support levels that XRP is currently holding just above at $2.38. A breakdown below these averages would signal a return to consolidation or, worse, a decline toward the $2.10 or even $2.00 zone, which would negate most of the bullish momentum.

The issue is how XRP is reacting in comparison to BTC. If Bitcoin breaks higher and XRP does not follow, it might indicate weak hands in XRP or just a lack of buying conviction.

Due to this divergence, XRP would be more susceptible to a steeper correction. Also, recent red candles have seen volume decreasing, giving a mixed signal: buyers are obviously cautious, but sellers are not overpowering the market.

If XRP manages to maintain current levels and recover $2.50, we might see a retest of the recent high. But if $2.30 doesn't hold, then the slide could quicken.

Bitcoin can see new highs

The price of Bitcoin is consolidating just below its most recent local high of $104,000, and all signs suggest that a significant volatility event is about to occur.

BTC has entered a textbook continuation pattern, which consists of tight daily candles with decreasing volume following its strong breakout above the $98,000 resistance. This suggests that a strong directional move is about to occur.

On the chart, Bitcoin is displaying a tight bull flag or mini-consolidation pattern just above key support levels like the 26 EMA. The price is still comfortably above the 50 and 100 EMAs, which is important because it shows strong short- and mid-term strength.

The RSI is also showing signs of cooling off, which means another upward push is possible without going into oversold conditions.

In terms of volatility, conditions are favorable for a large expansion. The Implied Volatility across options markets is decreasing due to the extended sideways price move, which usually precedes a large breakout or breakdown.

Volume has naturally tapered a bit during this consolidation. Crucially, a clear break above $104,500 would void any remaining bearish divergence and likely propel Bitcoin into price discovery territory above $110,000.

Before any further bullish continuation, there might be a brief retracement toward $98,000 or even $95,000 if the psychological level of $100,000 is not defended and there is a breakdown below the 26 EMA.

Ethereum's volatility is near

Ethereum is consolidating above its recently breached 200 EMA, displaying the classic hallmarks of a significant move on the horizon.

ETH encountered several resistance levels during its strong breakout rally in early May, putting it in a critical position to breach the long-feared 200-day Exponential Moving Average. This is a major turning point for any asset aiming for a long-term trend reversal.

At the current price of $2,500, Ethereum is retesting the 200 EMA zone as support, which may indicate the next significant move. If this level holds, then Ethereum has a good chance of reaching the psychological barrier of $3,000.

A sustained close above the 200 EMA would typically reinforce bullish conviction, but what adds a layer of caution is the way the structure is unfolding. The implication is that traders should anticipate a strong counterforce if this 200 EMA is quickly lost.

With volume rapidly decreasing, it's adding a degree of caution to the mix as it suggests that fewer traders are buying into the recent push. This divergence — rising or holding prices on decreasing volume — is often a beacon of caution for traders.

If this trend continues, then a potential steep retracement toward the $2,300-$2,200 range is now in the cards. The technical setup is screaming of incoming volatility.

With Monday's trading session approaching and usually opening in continuation or rejection of the last candle, it will act as a catalyst for volatility. At this stage, it depends on this retest for Ethereum's next move. A reversal from current levels might ignite a second bullish