XRP News Today: Bitcoin Drops 5% to $116,800 Amid Profit-Taking XRP Holds $2.81 Support Despite 10% Drop Ether Faces Overbought Conditions in Expanding Triangle SOL Struggles at $168 Resistance After Dual Breakout

Bitcoin's recent market rally has experienced a pullback, with prices dropping over 5% to $116,800 from record highs. This pullback is typical of a bull market and is likely due to profit-taking by long-term holders. The market is expected to revisit the breakout point of around $111,960 to test underlying buying interest before potentially initiating a stronger rally. The broader bullish bias will prevail as long as prices remain within the ascending channel on the daily chart. However, the hourly chart shows a steep corrective trend lower, with prices trading below the Ichimoku cloud, indicating bearish momentum. The RSI on the hourly chart has dropped below 30, suggesting an oversold condition and a potential bounce. Volatility could remain high as cumulative open interest in onshore and offshore futures and offshore perpetual futures has increased to 734.82K BTC, nearing the record high of 744K BTC in October 2022. The growth in open interest is likely being led by offshore exchanges, with annualized funding rates on offshore perpetuals topping 11%, indicating a growing demand for bullish exposure.

XRP has dropped from $3 and appears to be trapped in a downward-trending channel on the hourly chart, mirroring BTC. However, XRP is holding the confluence of the 100-hour simple moving average (SMA) and the Ichimoku cloud at $2.81, indicating underlying support. A breakout from here would imply an end to the correction and resumption of the broader uptrend toward the yearly peak of $3.4. On the way higher, bulls will likely be tested again at around $3. Volatility could be elevated with perpetual futures open interest hitting a record high of 2.74 billion XRP. The annualized XRP funding rates hover at 15%, indicating a growing bias for leveraged bullish plays.

Ether (ETH) remains trapped in an expanding triangle, with the daily stochastic flashing an overbought reading, pointing to stretched upward momentum. This weakens the case for a firm breakout in the short term. A consolidation around the resistance looks likely as prices are firmly above the Ichimoku cloud on the daily chart and short-term SMAs point north, indicating a bullish bias. An eventual breakout would shift focus to $3,400, a level targeted by options traders.

SOL's upside remains elusive despite the dual breakout on the daily chart. Since Friday, the bulls have failed at least twice to chew through bearish pressures at around $168, as evidenced by the long upper wicks attached to the candles for Monday and Friday. A break above $168 is now needed to confirm bullishness. On the downside, $157 is the level to watch as it marks the neckline support of the double top pattern on the hourly chart. A breakdown of the support line would imply potential for a deeper decline to $146, per the measured move method.