XRP Forms Falling Star as Market Eyes Pullback

XRP is currently drawing attention across the crypto landscape as it establishes a classic falling star pattern, which often precedes a reversal in trend. This technical move follows a sharp rally, marking a crucial moment for traders who are now evaluating if bullish momentum is beginning to weaken.

In recent sessions, XRP saw a strong climb toward a local high of approximately $3.70. However, what’s more telling than the peak itself is the shape of the latest daily candlestick. With a pronounced upper wick, a minimal real body, and hardly any lower shadow, the candlestick closely mirrors a falling star formation. This pattern suggests strong intraday sell-off pressure after buyers were initially in control, often foreshadowing an imminent pullback.

Following this move, XRP has slipped to around $3.49. Although it remains well above levels from earlier this month, its momentum may be cooling. The Relative Strength Index (RSI) now hovers above 88—well into the overbought zone—indicating the potential for a temporary correction or sideways movement. When assets become overstretched like this, they often face selling pressure as traders lock in profits.

Over the last two weeks, XRP notably outperformed many of its layer-one counterparts, benefiting from strong institutional volume. However, such parabolic moves without concrete structural backing can be vulnerable to sharp retreats. If bearish sentiment follows through, XRP could test its psychological and technical supports around the $3.20 or even $3.00 levels.

Whether this pattern leads to a significant correction or just a pause in the ongoing rally remains to be seen. Bulls must now defend key levels to maintain the asset’s recent upward trajectory and avoid deeper drawdowns.

Ethereum Maintains Bullish Charge

While XRP tries to hold its ground, Ethereum continues to soar with unrelenting enthusiasm in the market. Surpassing $3,600 with increasing momentum, Ethereum has climbed more than 150% since April. The rally reflects a broader increase in digital asset demand, especially among institutions attracted to Ethereum’s utility and regulatory prospects.

ETH has confirmed its breakout by clearly breaching psychological barriers like $3,000, then using that level as support before vaulting higher. The accompanying surge in volume reinforces that this rally is not just driven by retail FOMO, but deeper, strategic accumulation. The RSI for Ethereum is approximately 85, highlighting a strong yet exhausted buying push.

Although technically overheated, Ethereum thrives in such conditions when investor demand is high, particularly from DeFi protocols and ETF exposure. Key zones to monitor include $3,000 as support, $3,300 as former resistance now turned floor, and $3,700 as immediate overhead resistance. Traders may use any retreats toward the $3,300 range as entry points in anticipation of continued gains.

Bitcoin Approaches Short-Term Fatigue

Bitcoin, after reaching a new high of roughly $123,000, is showing the first signs of a cooldown. The premier cryptocurrency is now trading closer to $118,000, indicating a modest retreat as bullish enthusiasm eases. Charts reveal two consecutive rejection candles near recent highs, suggesting that market sentiment may be shifting toward consolidation.

Technically, Bitcoin is still inside a macro bullish trend since breaking out from a symmetrical triangle pattern. However, the RSI currently sits at a cooled-down reading of about 68. Volume is also tapering, which shows fewer traders are willing to buy at these higher levels. If Bitcoin loses its immediate support between $117,000 and $115,000, a slide toward the $110,000 level may follow, potentially retesting the upper boundary of its last consolidation range.

High levels of open interest in futures contracts and elevated leverage hint that any significant dip could trigger broader sell-offs due to liquidations. Despite the chance of short-term correction, the overall bullish structure remains intact for Bitcoin, particularly if it can stabilize above critical support.

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

In summary, XRP is flashing a technical warning sign as buyers and sellers battle for control at stretched valuation levels. Ethereum, on the other hand, continues to capture investor appetite, while Bitcoin appears to be catching its breath before deciding on its next major move.