XRP Price Crashes 10%; Focus on Bitcoin-Yen’s ‘Descending Triangle’ as Fed Rate Cut Bets Rise
Bitcoin’s price remains uncertain, fluctuating near key moving averages. However, analyzing the BTC/JPY pair reveals a descending triangle pattern, typically bearish. The horizontal support sits at ¥17,160,000 ($117,000). A break below this level would confirm a bearish reversal, targeting the rising trendline support. Conversely, a breakout above the triangle’s upper trendline could propel BTC/JPY to new highs. Interestingly, increasing expectations of Fed rate cuts in 2026 are bullish for Bitcoin. Rate futures now price in approximately 76 basis points of reductions, up from 25 basis points in April. Rising long-term government bond yields further suggest continued economic support. The USD/JPY outlook is positive, with the 30-year US-Japan bond yield spread at its lowest since August 2022, hinting at JPY strength. A yen rally could trigger risk aversion, potentially limiting gains in risk assets, including Bitcoin.
XRP experienced a sharp 10% drop, finding support at the 38.2% Fibonacci retracement of its recent rally ($2.99). While a recovery to $3.10 occurred, bearish momentum indicators suggest further downside. Retesting $2.99 is likely; a break below could target the 61.8% retracement at $2.57. To invalidate the bearish bias, XRP needs to break above $3.35. The dual breakdown of the uptrend and sideways channel confirms a bearish shift.
Ether (ETH) continues its descent within a downward-trending channel. Bearish crossover of the 50- and 100-hour SMAs, and the weakening 200-hour SMA, point to further declines. The price is below the Ichimoku cloud. Only a move above $3,740 would shift the outlook bullish. The 200-hour SMA is crucial support; a break below suggests an extended downtrend.
Solana (SOL) mirrors Ether’s hourly chart, moving within a descending channel and below the Ichimoku cloud. The Guppy indicator is decisively bearish. The bearish bias persists below the $192 high. Recovery rallies within the channel will likely face resistance at the channel’s upper boundary and the cloud’s underside.
