Markets correct after the strong Rallye

Fundamental Data

The crypto market also showed a sharp correction after prices had been rising previously. This shows once more that the space remains also vulnerable for news events in general. Traders took profits during a time of thin liquidity leading to a selloff of more than 7% in some tokens. DOGE, XRP, ADA were some of the affected tokens. The negative sentiment emerged after news that Trump could potentially impose tariffs of 50% on goods imported from the EU. He stated that the talks with the Union are going nowhere, which is likely to cause a potential move.

Bitcoin has previously created a new all- time- high by touching the USD 112,000 level before correcting towards the 107,000 zone.

Technical Analysis:

BTC – Bitcoin is trading at USD 109,167. After having created a new high the market went into a corrective pattern and seems to follow such move for now. Tensions in regards to the tariff conflict keep increasing and the market might be vulnerable for further losses. On one hand BTC is also seen as digital Gold but still on the other following geopolitical tensions and news events.

BTCUSD daily chart

The recent retracement might only be a valuable push lower as the strong uptrend still remains intact. As long as US indices and in particular the Nasdaq remain positive, more upside should be expected.

ETH – Ethereum is currently trading at USD 2,569. The price continues to trade higher after the strong bounce off the previous lows. Currently, though, the price seems to be capped below the 50- moving average. This level is likely to impact the market even further. Important to note as well that the general inflow in markets continues to be for Bitcoin, with altcoins only getting a fraction of the attention. If this changes, more upside in the “altcoin- season” might be seen.

ETHUSD weekly chart

A beak of the technical resistance as mentioned above might quickly escalate the move towards the USD 3,000 level, whereby a generally weaker sentiment could cause prices to fall further.

XRP – Ripple is currently trading at USD 2.3513 and was not able to regain higher prices. The bearish- looking pinbar candlestick pattern from two- weeks ago seems to be the reason why the market has been heading lower last week.

 XRPUSD weekly chart

Following such move the market might still push lower for now. A target could be found with the USD 2.0000 price level, depending on the overall market sentiment. After the strong push higher since Trump took office, the 50- moving average has also been rising sharply. That zone could also act as support in case of further negative market sentiment.

SOL – Solana is currently trading at USD 177.31. A push towards the range of USD 200.00 is needed to clarify for further upside momentum. Currently, the market remains in a sideways trend and with that capped near the current price zone. Below the USD 130.00 range would indicate bearish trouble, whereas a push beyond USD 200.00 would offer sustainable upside momentum. 

SOLUSD monthly chart

More price- action especially from BTC and ETH might be needed in order to move this market into any direction. Until then the momentum is expected to remain limited.