Bitcoin rally loses steam, signaling potential upside exhaustion.

Crypto Market Update: BTC Rally Stalls Near $120K, ETH and XRP Show Weakening Momentum

Bitcoin: Momentum Stalls at $120K as Correction Risks Rise

Bitcoin (BTC) is struggling to extend its rally, trading flat around $119,000 amid signs of market fatigue. Options data from Deribit indicates strong positive dealer gamma at the $120K and $120.5K levels. This gamma setup suggests that market makers are actively managing exposure by selling into strength and buying dips, which often suppresses volatility and contributes to price consolidation.

From a technical standpoint, a critical support zone lies between $116,000 and $117,000. A break below this area could trigger a deeper pullback toward the previous high near $112,000. Conversely, a strong move above $120,000 could pave the way for new all-time highs.

Recent signals, however, lean bearish. A three-line break chart confirmed on July 22 produced a minimal 0.12% green candle—typically a sign of bullish exhaustion.

AI Insight: A faint bullish signal on the three-line break chart highlights fatigue in the uptrend. Traders should be cautious as the risk of a short-term reversal grows.

• Key Resistance: $120,000, $123,181
• Key Support: $116,000–$117,000, $114,700, $111,965

Ethereum: Brief Rally Fizzles as Indicators Flash Bearish Divergence

Ether (ETH) climbed to a 7-month high of $3,937 before losing momentum and retracing to $3,880. While this move temporarily invalidated last week’s Doji candle, technical indicators now point to waning strength.

The Relative Strength Index (RSI) failed to confirm the new high, showing bearish divergence. Additionally, the MACD histogram is nearing a bearish crossover. On-chain metrics—like Ethereum’s network fees and protocol revenue—are also lagging behind the price action.

AI Insight: Weak confirmation from RSI and a possible MACD cross suggest the recent price surge may not be sustainable. A correction could be near.

• Key Resistance: $4,000, $4,100, $4,382
• Key Support: $3,770, $3,510, $3,000

XRP: Rejected at Resistance, Pullback Gains Steam

XRP has reversed earlier gains after being rejected near $3.35—its former support-turned-resistance. The hourly RSI has broken below its bullish trendline, and the MACD histogram has turned negative, signaling a loss of upward momentum.

A retest of the July 24 low at $2.96 appears increasingly likely. If that support fails, the next downside target is the May high of $2.65. On the weekly chart, a bearish tweezer top pattern remains intact, further suggesting downside risk.

AI Insight: XRP’s weekly tweezer top and momentum breakdown indicate a potential trend reversal. Caution is warranted at current levels.

• Key Resistance: $3.35, $3.65, $4.00
• Key Support: $2.96, $2.65, $2.44 (200-day SMA)

Solana: Uptrend Faces Test Despite Recovery

Solana (SOL) has recovered above the hourly Ichimoku cloud and is forming higher lows, hinting at a possible retest of the $200 level. However, bearish pressure remains, with a tweezer top pattern still valid near $205–$206.

A drop below $184 could accelerate a pullback toward the 200-day moving average at $163. For bulls, a breakout above $206 would be needed to shift momentum decisively back to the upside.

AI Insight: While short-term structure has improved, the bearish tweezer top pattern suggests any further rally faces significant resistance. A breakdown below $184 could confirm a reversal.

• Key Resistance: $205–$206, $218, $252
• Key Support: $184, $163, $126