Daily Crypto Signals: Bitcoin Faces Distribution Zone Warning, XRP Outpaces Market Amid Institutional ETH Rotation
Bitcoin shows bearish divergence signals pointing to potential $115K correction, while XRP delivers 552% yearly gains and Ethereum captures
Quick overview
- Bitcoin shows bearish divergence signals, indicating a potential correction to $115K.
- XRP has achieved a remarkable 552% gain over the past year, outperforming both Bitcoin and Ethereum.
- Ethereum is attracting significant institutional interest, with daily ETF inflows exceeding $500 million.
- Whale accumulation in XRP suggests strong confidence among large investors, contributing to its price momentum.
Bitcoin BTC/USD shows bearish divergence signals pointing to potential $115K correction, while XRP XRP/USD delivers 552% yearly gains and Ethereum ETH/USD captures institutional attention through accelerating ETF inflows worth over $500 million daily.
Crypto Market Developments
As institutional capital moves between major assets, the cryptocurrency market is seeing a big change in momentum. Bitcoin is having technical problems, with bearish divergence patterns and unfilled CME gaps pointing to possible losses. At the same time, other cryptocurrencies like XRP and Ethereum are getting more attention from investors. Starting August 1st, Hong Kong’s new rules for stablecoins will go into effect. These rules will make it illegal to distribute stablecoins without a license. Meanwhile, the Tornado Cash court case is still going on, with Ethereum core engineers testifying in support of the privacy protocol.
Bitcoin Risks Dip to $115,000
Bitcoin is showing some worrying technical signs that imply it may be weak in the future, even though it is still on a long-term upward trend. There is a concealed negative divergence between the price action of the cryptocurrency and the Relative Strength Index (RSI) right now. Bitcoin has hit greater highs, while the RSI indicates equal or lower highs. This pattern showed up before in March 2024, and the price dropped by 20% in the days after that. The divergence shows that the current rise is losing steam and generally comes before big drops in price.
Bitcoin has a crucial CME gap between $114,380 and $115,635 that has traditionally been filled, which adds to the negative case. These gaps happen when Bitcoin trades outside of the normal hours of the Chicago Mercantile Exchange. The market usually goes back to these price gaps. Seven of the nine CME gaps have already been closed by 2025. This means that there is a good chance that Bitcoin will go back down to fill this gap. The Index Bitcoin Cycle Indicators (IBCI) has also entered the distribution zone at 80%. This is the third time this has happened in the current bull cycle, and it could be a hint that the market is about to make some short-term corrections, but it doesn’t mean that the cycle is about to end.
Ethereum Records Strong Institutional Inflows
Ethereum is seeing an unprecedented amount of institutional adoption, even if it has had some technical problems recently. Major companies are adding ETH to their strategic treasury assets more and more. The cryptocurrency fell 7% from its highest point this year as validator exit queues reached an 18-month high. There were 644,330 ETH worth almost $2.34 billion waiting to leave the system, which would take 11 days. However, Everstake, a staking provider, made it clear that this backlog is probably just validators leaving to “restake, optimize, or rotate operators” and not permanently quitting Ethereum.
The institutional story for Ethereum keeps becoming stronger as US spot Ether ETFs are now regularly receiving daily net inflows of more than $500 million, which is the most they have seen since they started. Companies like Bit Digital have made big moves, selling all of their Bitcoin to buy 100,000 ETH worth $172 million. Other companies, such BTCS Inc., BitMine, and SharpLink, have also aggressively bought ETH. These groups own about 652,929 ETH worth more than $2.37 billion. BlackRock’s 2.14 million ETH holdings show that institutions are interested in this. This change in institutions shows that Ethereum is ready to “step into leadership” when the next phase of the crypto cycle begins.
XRP Whale Accumulation Continues
XRP is the best-performing major cryptocurrency, with returns that are far better than those of Bitcoin and Ethereum over long periods of time. XRP has gone up an amazing 552% since July 2024, which is a lot more than Ethereum’s small 6.34% rise over the same time period. XRP’s power is even more clear when you look at how it has done this year. The token has gone up 49% from $2.08 to $3.10, whereas Ethereum has only gone up 9.5%. This amazing success has brought XRP to about 82% of its all-time high of $3.84, showing that it has been able to keep up its momentum near peak levels.
Whale accumulation has been a big part of how XRP’s price has changed. Right now, 2,743 wallets own more than a million XRP each, which is 47.32 billion tokens, or about 4.4% of the total circulating supply. A lot of big investors own a lot of the same things, which has made the supply tighter. This caused prices to go up by 50% in the first half of July alone. The whale-driven momentum shows that big holders are quite sure of themselves and predicts that prices will keep going up. While institutional adoption may be better for Ethereum in the long run, XRP is very close to all-time highs and whales are still buying it, which means it has good short-term prospects.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save