A leading market analyst, Gareth Soloway, suggests the cryptocurrency market may be heading into a short-term rebound, though investors should brace for continued volatility. The technical outlook indicates that major assets like Bitcoin (BTC), Ethereum (ETH), and XRP could experience a temporary recovery rally before the market determines its longer-term direction.
Bitcoin's Technical Setup: Soloway explained that Bitcoin recently formed a classic bearish structure after a sharp decline from previous highs, followed by consolidation and another drop. However, recent price action is now showing signs of a bullish consolidation pattern, typically appearing when buyers accumulate during periods of fear. This setup could lead to a near-term rebound toward the $80,000–$85,000 zone, where strong resistance is expected. A break above that area could extend gains toward $90,000–$95,000, though such a move would require stronger market momentum. The analyst noted Bitcoin continues to move closely with the technology stock sector, which is currently in a deleveraging phase.
Ethereum's Market Correlation: Ethereum and most large-cap altcoins typically follow Bitcoin's trend cycles. If Bitcoin stabilizes, Ethereum could participate in a short-term recovery rally. In the short term, Ethereum is also forming a bullish consolidation zone, suggesting the possibility of a relief rally toward the $2,600 area, which represents the lower boundary of its previous consolidation region. Historically, crypto markets experience large drawdowns during cycle transitions, often followed by extended consolidation before the next major rally begins.
XRP's Critical Resistance: For XRP, the technical picture remains more uncertain. The asset recently broke below an important support level and attempted a bounce, only to face rejection near a critical resistance zone around $1.78. According to the analyst, XRP bulls must push the price back above this resistance to regain upside momentum. A successful move above this level could help break the current downward trend line and stabilize the asset. Failure to reclaim resistance may keep XRP trading under pressure along with the broader altcoin market.
Broader Context and Long-Term Views: The analysis is set against a backdrop where global crypto adoption continues to advance. Separate commentary highlights XRP's role as Ripple's SWIFT challenger, with a market cap of $91 billion and recent institutional interest from entities like the United Nations Capital Development Fund and the White House. The approval of U.S. spot XRP ETFs is also noted. For Ethereum, its dominance in DeFi with around $55 billion locked and a market cap of $238 billion is emphasized, with a bullish scenario suggesting it could breach the $5,000 resistance by June. Cardano (ADA), built on peer-reviewed academic research, is mentioned with a market cap over $10 billion, though its analysis is less central to the core market prediction narrative.
