XRP Dips 4% Amid Bitcoin’s Resistance at $105K

XRP experienced a notable decline of over 4% in the last 24 hours, leading losses among leading digital assets as the broader crypto market shows signs of fatigue following a strong rally the previous week. This drop highlights ongoing investor caution and market hesitation near key resistance levels.

At the same time, Bitcoin remains tightly range-bound just above the $104,000 mark. Market participants are closely monitoring its struggle to surpass the $105,000 threshold, which currently represents a significant psychological and technical level of resistance, according to analysts.

Across the board, the cryptocurrency market saw a modest contraction. Data from CoinGecko shows the total market capitalization dropped by approximately 2% to $3.3 trillion. Major players including Ethereum (ETH) and Solana (SOL) have slowed, hovering near their 200-day moving averages. This behavior may reflect a period of consolidation, although there’s a risk it precedes a larger short-term correction.

“Over the last week, Bitcoin has been gradually forming what appears to be a market top,” said Alex Kuptsikevich, chief market analyst at FxPro. “This pattern often leads to a pullback, especially as declines in equity markets and profit-taking from gold investors emerge in parallel.”

The Crypto Fear & Greed Index slightly declined from 73 to 70, still reflecting a sentiment of ‘greed’ but indicating that enthusiasm may be weakening somewhat. This drop adds to concerns that bullish momentum in the market is beginning to cool.

Augustine Fan of SignalPlus expressed measured optimism, noting that digital assets could continue trending higher barring a major downturn in equity markets. However, he cautioned that Bitcoin would likely contend with persistent resistance at $105,000. Fan suggested that Ethereum and other altcoins may fare better over the near term, citing improving capital inflow trends and stronger relative performance versus Bitcoin.

From a macroeconomic viewpoint, Fan highlighted a broader trend favoring alternative assets. “We’re witnessing a more structural shift away from the U.S. dollar,” he observed. “There’s an increased allocation toward emerging markets, precious metals, and cryptocurrencies as investors look to cushion themselves from rising geopolitical tensions and currency volatility.”

Research from K33 points toward demand in the spot market — particularly from retail investors and asset managers across Asia — as a major driver behind Bitcoin’s recent gains. Unlike previous bull runs driven by high leverage, this base of steady buying could help support optimistic outlooks, even if prices remain flat in the short term.

Nick Ruck from LVRG Research offered additional insight, suggesting that investor restraint might be tied to upcoming macroeconomic releases and uncertainty about the longer-term impact of recently concluded U.S. trade agreements.

“This current pause in market movement may be a response to pending economic reports and concerns about inflation,” Ruck said, pointing to weaker consumer spending in the United States as a possible red flag. “While short-term bullishness continues, tariffs in light of finalized trade deals may bring long-term headwinds that influence market performance well into the future.”

Related: Expert Advice: Sell XRP If You’re Confused

As things stand, the crypto market — including XRP — appears to be navigating a critical juncture. While overall sentiment remains cautiously optimistic, the potential for a decisive breakout or major pullback is on the horizon. How Bitcoin fares at the $105,000 resistance level may serve as a bellwether for broader crypto performance in the near term.