Bitcoin and XRP See Sharp Corrections, Is a Recovery on the Horizon?

In recent weeks, XRP has seen an impressive surge, rising from below $2.30 to highs above $3.50. However, beneath this bullish momentum lies a potential technical risk — the formation of a double top, a classic bearish reversal pattern that could indicate an upcoming downtrend.

After its initial breakout to the $3.50 zone, XRP faced a sharp pullback but is now showing signs of recovery. The fact that it’s holding above $3.20 suggests that bulls are still in control. However, if XRP retests the $3.50 level and fails to break through convincingly, a second peak could form — completing the double top — which may trigger short- or medium-term selling pressure.

Another concern comes from the Relative Strength Index (RSI), which is now nearing the 75 level — a typical overbought threshold. While a strong RSI generally reflects bullish strength, repeated tests of high levels without a breakout may signal exhaustion.

Volume is also a key factor. Although buying pressure helped drive XRP to $3.50, the most recent climb has come with relatively lower trading volume, which could indicate fading investor interest. If the price revisits the $3.50 region and stalls, traders should watch closely for signs of lower highs and distribution patterns — both warning signals of a possible reversal.

Bitcoin: Clear Resistance at $120,000

Bitcoin has now firmly established $120,000 as a strong resistance level. Despite weeks of steady gains and multiple breakout attempts, the flagship cryptocurrency continues to face rejection at this major technical and psychological barrier.

There have been several intraday spikes above $120,000, but BTC has yet to close decisively above this level. This suggests significant selling pressure or profit-taking. Compounding this concern is the relatively low volume accompanying these breakout attempts, hinting that bulls may be running low on immediate momentum without a consolidation phase.

Still, the current sideways movement just below resistance is not necessarily bearish. The RSI sits at a neutral 61, allowing for a healthy reset after a strong uptrend. Momentum remains intact, with both the 50-day and 100-day exponential moving averages (EMAs) sloping upward, providing reliable support at $115,000 and $111,000, respectively. However, if the market fails to break above resistance, a deeper pullback toward the $111,000–$108,000 range is possible.

Overall, Bitcoin remains structurally bullish. But to confirm the continuation of the rally, a decisive breakout above $120,000 — supported by strong volume — is still needed.