Daily Crypto Signals: Bitcoin Nears $95K While XRP Faces Bearish Pressure
Bitcoin receives robust institutional backing as XRP signals concerning technical patterns despite Ripple's educational initiatives
Quick overview
- The cryptocurrency market is experiencing high volatility ahead of the Federal Reserve's interest rate decision, impacting risk sentiment.
- Bitcoin is facing resistance around $95,000 after a recent retreat, while XRP shows bearish signs with declining network activity.
- VanEck has filed for the first U.S. BNB ETF, potentially opening new institutional investment avenues for Binance's native cryptocurrency.
- Several altcoins, including Ethereum and Solana, are showing promising technical setups, indicating potential upward movements.
The crypto market is experiencing high volatility into this week, ahead of the upcoming Federal Reserve interest rate decision, which is expected to influence risk sentiment. Bitcoin is facing resistance around the $95,000 level after retreating from recent highs, while XRP shows warning signs with a bearish technical pattern and declining network activity, contrasting with BNB which is holding key support despite a slight slip.
Crypto Market Developments
Despite recent price adjustments, the crypto market still shows indications of divergence as Bitcoin dominance rises to 70%, its highest level since January 2021. Amid a flurry of cryptocurrency launches and major institutional changes including VanEck’s innovative filing for the first U.S. BNB exchange-traded fund (ETF), this market concentration fits.
In other major announcements, Tether CEO Paolo Ardoino has revealed a future artificial intelligence platform with integrated Bitcoin and USDT payment capabilities, meant to function on a “fully open-source AI runtime” via a “peer-to-peer network” without API keys or centralized control points. Concurrently, the Solana Foundation confirmed that all money remain safe following the deployment of required repairs after addressing a severe security flaw potentially compromising Token-22 secret tokens.
Bitcoin Holds Under $95,000 Ahead of FOMC
After almost topping $97,900 on May 2 then dragging back 4.3% over three days, Bitcoin BTC/USD has faced opposition close to the $95,000 barrier. BTC has kept support around $94,000 despite this adjustment; multiple positive signals point to ongoing higher potential.
With spot Bitcoin ETFs showing $4.5 billion in net inflows between April 22 and May 2, institutional activity stays especially robust. Under Michael Saylor’s direction, strategy revealed on May 5 the purchase of 1,895 BTC after increasing its capital increase plan to finance further Bitcoin purchases to reach $84 billion. With total open interest reaching 669,090 BTC—a 21% rise since March 5—the Chicago Mercantile Exchange (CME) alone accounts for almost $13.5 billion, and bitcoin futures markets have also displayed strong institutional interest.
But a number of elements have momentarily slowed Bitcoin’s advance toward $100,000, including mounting discontent over the implementation schedule of the U.S. Strategic Bitcoin Reserve law and the failure of like state-level projects. Rising U.S.-China trade tensions have also reduced general market risk appetite; gold outperforms both Bitcoin and the S&P 500 over the past three months, so subverting the story of Bitcoin as an uncorrelated asset.
Notwithstanding these challenges, Bitcoin’s technical signals and strong institutional support point to the coin staying in a good position to maybe reach new all-time highs in the next months, especially if world trade relations improve.
XRP’s Technical Analysis Points to Bearish Pressure
XRP XRP/USD is under considerable bearish pressure since daily charts show a worrying descending triangle pattern based on its price, which corresponds with quite low network activity. Usually indicating a bearish reversal following a significant upward trend, this technical pattern is distinguished by a flat support level and downward-sloping resistance line.
Currently trying to keep XRP above the 50-day simple moving average (SMA) at $2.18, the bulls show weakness in purchasing power. Should this trend continue, a closing below the 50-day SMA and the 100-day SMA at $2.06 will drive XRP into the psychological support level around $2.00. Should this support fail, XRP price might drop 45% from present levels and slide toward $1.20 by the end of May.
With daily active addresses (DAAs) falling from March’s peak of 608,000 to roughly 30,000 in recent weeks, indicating declining user involvement and transaction activity, network activity measures support these concerns. XRP’s 1.17% price decline over 24 hours has been accompanied by a 30% rise in daily trading volume to $2 billion, maybe suggesting trader profit-taking or repositioning.
Positively, XRP Ledger’s creator, Ripple, has donated $25 million in Ripple USD (RLUSD) to Teach For America and DonorsChoose for education non-profits. CEO Brad Garlinghouse claims that this program seeks to solve financing disparities in U.S. education highlighted by a 2024 Gallup poll indicating 55% discontent with K-12 education quality while supporting teachers and students with required resources.
VanEck Files for First US-Based BNB ETF
The first U.S. exchange-traded fund (ETF) holding Binance’s native cryptocurrency, BNB BNB/USD, asset management VanEck has registered for. With this innovative approach, which represents the first attempt by any asset management to file a BNB ETF in the United States, maybe enabling new institutional entry routes to the third-largest cryptocurrency by market capitalization.
The ETF’s S-1 prospectus claims that the fund is meant to gather spot BNB tokens and might periodically stake a part of its assets through reliable staking companies. Data from Stakingrewards.com shows that BNB stakers as of May 5 get over 2.5% yield.
Having a total value locked (TVL) of around $6 billion, BNB Chain is still among the most often used smart contract systems. Currently trading in a range between $576 and $620, the BNB token has a market valuation of around $84 billion and has been experiencing opposition at the moving averages while finding support at lower levels.
This documentation follows shortly after Binance co-founder Changpeng “CZ” Zhao reportedly stated anticipation that the popularity of Bitcoin ETFs would finally “spill over” into altcoins. VanEck’s action is the most recent in a string of filings aiming to list ETFs holding other cryptocurrencies as spot Bitcoin ETFs have drawn over $40 billion in net inflows since their January 2024 debut.
Top Altcoins to Watch Today
Several altcoins are showing interesting technical setups worth monitoring in the current market environment:
- Ethereum ETH/USD: Buyers have managed to sustain Ethereum above moving averages, signaling strength. With the 20-day EMA ($1,771) sloping up gradually and the RSI in positive territory, ETH could potentially surge toward the $2,111 resistance level if it breaks past minor resistance at $1,957.
- Solana SOL/USD: Finding support at the 20-day EMA ($143), SOL shows resilience with buyers accumulating on dips. A successful break above the $153 resistance could trigger an ascent toward $180, potentially bringing the larger $110 to $260 range into play.
- Sui (SUI): Attempting to bounce off its 20-day EMA ($3.09), Sui is displaying demand at lower levels. With upsloping 20-day EMA and RSI in positive territory, a break above $3.90 could propel SUI toward $4.25 and potentially $5.
- Dogecoin DOGE/USD: While maintaining position above moving averages, DOGE has failed to initiate a strong rebound. The cryptocurrency appears confined to a $0.21 to $0.14 range in the near term, with flattish moving averages and RSI near midpoint suggesting continued consolidation.
- Cardano ADA/USD: Currently witnessing a struggle between bulls and bears near moving averages, ADA shows no clear advantage to either side. A break above $0.75 could open doors for a rally to $0.83, while a close below moving averages could send it toward support at $0.58.
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