XRP market sentiment remains stable even as leading crypto traders shift bearish on bitcoin (BTC) and ether (ETH), marking a significant change in direction from last week’s all-time highs and bullish projections.

Crypto Momentum Slows After Historic Highs

Only days after reaching euphoric highs and receiving lofty $300,000 projections for bitcoin, the broader cryptocurrency market is showing signs of slowing momentum. Bitcoin has retreated to $115,000, dipping around 3% in the past 24 hours. Although still residing within a relatively stable $112,000 to $124,000 range, the pullback signals caution is creeping into the market.

Ethereum followed a steeper decline, down by 5% over the past day to $4,317. Still, ETH remains roughly 21% above its price one month ago. The growing pressure on both major cryptocurrencies comes amid changing expectations around the U.S. Federal Reserve’s monetary policy.

Federal Reserve Policy Adds Pressure

Investor concern about the Federal Reserve’s potential interest rate cuts in September has contributed to the uncertainty. While a rate reduction would traditionally benefit risk assets like cryptocurrencies, the probability of such a move has declined slightly. According to the CME FedWatch Tool, the likelihood of a September cut has dropped from nearly 100% to around 83%.

Analysts Warn of Liquidation Risk

Andrew Kang, co-founder of Mechanism Capital, voiced his bearish stance on social media, expressing concern over the growing liquidation risks in Ethereum’s market. In his post, Kang estimated potential ETH liquidations could approach $5 billion as heavily leveraged trading positions start to unwind.

Trading chart indicates recent ETH price volatility and potential trend reversal.

Kang suggested a possible decline in Ethereum’s value to between $3,200 and $3,600. He attributed the scenario partly to the short-lived impact of ETH DATs (Deposit Access Tokens), whose initial demand surge has started to fade. The slowdown in buying could increase vulnerability in the ETH market as leveraged buyers exit positions.

Validator Exit Queue Raises Eyebrows

Investor confidence is further shaken by data showing a record number of Ether awaiting withdrawal from its staking system. As highlighted by CoinDesk last week, over 885,000 ETH—worth approximately $3.8 billion—is now in the unstaking queue. This indicator points to increasing profit-taking and large-scale strategy shifts among institutional and individual stakers alike.

Major staking platforms such as Lido have seen significant volumes of ETH withdrawn. These movements not only reflect preparation for potential ETH staking ETFs but also expose the market to more forced liquidations, which could amplify downward pressure.

Bearish Sentiment Catches Fire Among Traders

Reinforcing the broader sentiment shift, popular pseudonymous trader Flood echoed cautious warnings. In a tweet, Flood commented bluntly: “Back to $2k you go Ethereum, where you belong.” Such statements exemplify the fragile emotions permeating crypto trading circles, where sentiment can pivot rapidly from bullish optimism to bearish fear.

While BTC and ETH dominate the headlines with their recent downtrend, XRP remains relatively insulated from this specific market cycle. The stability in XRP’s sentiment underscores a growing interest from institutions and developers in the Ripple ecosystem, particularly with new payment solutions built on the XRP Ledger (XRPL).

Related: XRP Price: $12M Max Pain for Bears

Opportunities Amid Market Volatility

Despite the growing bearish outlook, some traders view the downturn as a strategic opportunity. Wall Street legend Warren Buffett’s classic advice—“Buy when there’s blood in the streets, even if the blood is your own”—is making the rounds in crypto discussion circles. For experienced participants, bear markets can present rare chances to enter strong positions.