Daily Crypto Signals: Bitcoin Faces Dollar Headwinds, XRP Tests Critical Support at $2.65
The cryptocurrency market is navigating mixed signals as Bitcoin struggles to reclaim $120,000 amid dollar strength concerns, while XRP face
Quick overview
- Bitcoin struggles to reclaim $120,000 as it faces pressure from a strong US dollar.
- XRP is experiencing significant selling pressure from whale investors, risking a deeper correction if it falls below key support levels.
- The conviction of Tornado Cash co-founder Roman Storm on money laundering charges highlights ongoing regulatory scrutiny in the crypto space.
- Indonesia is considering establishing a national Bitcoin reserve, which could boost Bitcoin adoption in the country.
The cryptocurrency market is navigating mixed signals as Bitcoin BTC/USD struggles to reclaim $120,000 amid dollar strength concerns, while XRP XRP/USD faces mounting pressure from whale selling that could trigger a deeper correction if key support levels fail. Legal developments continue to impact the sector, with Tornado Cash co-founder Roman Storm receiving a guilty verdict on money laundering charges.
Crypto Market Developments
This week, the world of cryptocurrencies went through a lot of ups and downs, with both regulatory changes and technical problems for key digital assets. The conviction of Tornado Cash co-founder Roman Storm on conspiracy charges for running an unauthorized money transfer service has sent shockwaves across the decentralized finance industry. It shows that privacy-focused protocols are still being watched by regulators.
At the same time, the market got another harsh reminder of how easy it is to get hacked when a bitcoin investor lost $3 million to a sophisticated phishing assault with only one click. The victim didn’t check the contract address well enough before signing a blockchain transaction. This shows how important it is to do your homework while managing digital assets.
On the bright side, Indonesia has become a possible new actor in the story of Bitcoin adoption. The Indonesian government is really thinking about setting up a national Bitcoin reserve. Recently, the local Bitcoin advocacy group Bitcoin Indonesia talked to the Vice President’s office about how mining bitcoin may be a national economic plan. This is a big deal since Indonesia is the fourth most populated country in the world, with more than 280 million people and a GDP of $1.4 trillion.
Bitcoin Could Test $120,000 Amid Dollar Weakness
The price of Bitcoin is still very much affected by larger economic issues, especially how strong the US dollar is. The cryptocurrency has always had an opposite relationship with the US Dollar Index (DXY). This was clear when Bitcoin fell below $114,000 on Friday while the DXY rose to its highest level in more than two months. Bitcoin bulls are keeping an eye out for signs of dollar weakening that might push the cryptocurrency back toward the psychologically crucial $120,000 mark. Right now, Bitcoin is trading at about $114,913.
The DXY fell to 98.5 on Wednesday after the US jobs report for July came in worse than expected. This has made traders more likely to expect additional interest rate reduction from the Federal Reserve. This change in monetary policy might hurt the dollar’s yield advantage and help Bitcoin. But analysts say that the dollar’s fall alone may not be enough to push Bitcoin to new highs. Credit market conditions and general risk sentiment are also very significant in deciding where the cryptocurrency will go next.
Market sentiment measures, especially the ICE BofA High Yield Option-Adjusted Spread, show that investors are still being careful, even though things have been better recently. The spread, which shows how much more investors want to be paid to keep lower-rated corporate bonds, is now close to 3, which is close to its 200-day moving average. This reading shows that the market is neither too optimistic nor too pessimistic. This means that any Bitcoin rise toward $120,000 may run into problems because of general economic uncertainty, such as ongoing trade tensions around the world and how they affect the technology sector’s reliance on imported AI processing units.
XRP Faces Sell Pressure, More Bearish Moves Ahead?
XRP is having a lot of technical and fundamental challenges, as it drops sharply from its July highs. The cryptocurrency is now worth about $2.98, which is almost 19% less than its yearly high of $3.65 on July 18. According to CryptoQuant statistics, whale wallets have sold over 640 million XRP tokens (around $340 million) since July 9. This is likely what is causing the selling pressure.
The important support level for XRP is now $2.65, which is the same as the quarterly Volume-Weighted Average Price (VWAP) and the 0.50 Fibonacci retracement level from the last rise. This price level was a major barrier for the first half of 2025, but as XRP broke out in July, it became support. Technical analysts say that if XRP stays below $2.65 for a long time, it might cause what crypto trader Nebraskangooner calls a “full pump retrace,” which could drive XRP back to its old range around $2.
The technical outlook for XRP isn’t all bad, either. After briefly testing the $2.66-$2.80 area on Saturday, the cryptocurrency has successfully stayed above the initial support zone at $2.80 and made a higher low on Sunday. According to technical analyst Mind Trader, XRP has finished a 50% Fibonacci retracement from its high of $3.65. If this level holds, it might pave the ground for a new push toward $4.15, which could be a new all-time high. XRP bulls will need to keep the current support structure in place and hope that whale investors, who have been the main cause of the recent downturn, stop selling so much.
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