Crypto Pullback Tests Key Support as Ethereum and XRP Hold Strong Setups

Right now, crypto is pulling back, but the real question is whether we are watching a breakdown or simply a normal retracement back to the levels where these recent breakouts began. Fear is still elevated, but when I look at the charts, the technical structure across several major cryptocurrencies remains constructive. The key is whether support holds. If it does, these pullbacks can still set up another move higher. If those levels fail, then the picture changes.

Let’s start with Bitcoin (BTC). Bitcoin recently topped out around $65,000 and has pulled back toward $63,500, roughly a $1,500 decline. That move has made people nervous, but the size of the drop matters less than where Bitcoin is trading now.

Bitcoin has come back to the trend line it previously struggled to break above. This is a common setup. Price breaks through resistance, comes back to test that former resistance as support, clears out weaker positions and liquidations, and then attempts to move higher again.

For me, $62,500 is the important level. The trend line is descending, so over the next few days it could move toward $62,000. A close below that trend line, especially below the prior lows around $62,200, would become concerning because it could signal that the breakout has failed.

As long as Bitcoin holds that structure, the upside setup remains intact. The next larger move would be toward $71,000 to $72,000. If Bitcoin breaks through that area, the next target is approximately $77,000.

Ethereum (ETH) may actually have the stronger chart right now. Ethereum formed a classic inverse head and shoulders pattern, broke above it, tested the breakout area, held, and is now moving sideways. That sideways action looks like a bullish flag consolidation. The level that matters is $1,775 on a daily closing basis. As long as Ethereum holds $1,775, the structure remains bullish, and the consolidation continues to favor an eventual move higher.

Solana (SOL) is showing a similar pattern. It formed a cup, followed by a handle, broke out, and then retraced back toward the breakout area. Near term resistance is around $83. Beyond that, the larger technical target is approximately $100, where the parallel trend lines converge. Again, the setup depends on Solana continuing to hold the breakout structure.

Then we have XRP (XRP), which may be one of the more interesting setups in the group. XRP has been trading inside a larger wedge pattern, which compresses price before a potentially larger move. During the latest decline, XRP briefly dropped through $1.00, triggering stops and liquidations. It then recovered sharply and turned positive on the day, with a significant increase in volume following that move.

The support area I am watching is approximately $0.965 to $0.95. As long as XRP holds that zone, the breakout remains intact. Short-term resistance is around $1.17. If the CLARITY Act passes, the larger target discussed is approximately $1.55, which would represent roughly 50% to 55% upside from the current level described in this setup.

The CLARITY Act remains the major fundamental catalyst behind this broader crypto thesis. The expectation is that it could pass in September, probably late September, after Congress returns from recess. The view is that political pressure heading into the midterm elections could create additional incentive to move the legislation forward. If that happens, XRP could be one of the primary beneficiaries.

We are also seeing some movement outside the largest names. Cardano (ADA) has started pulling back after a strong run, while Internet Computer (ICP) has had a good move higher during the last 24 hours. That supports the broader idea that more parts of the crypto market are beginning to wake up, even while overall sentiment remains fearful.

So right now, I am not treating this crypto pullback as a confirmed breakdown. Bitcoin needs to protect roughly $62,500, with $62,200 becoming the more serious warning level. Ethereum needs to hold $1,775. Solana is still working toward $83, with approximately $100 as the larger target. XRP needs to defend roughly $0.965 to $0.95, with $1.17 as the first resistance level and approximately $1.55 as the larger target if the expected catalyst develops.

This is where patience and price discipline matter. Fear can move quickly, but the levels tell us whether that fear is actually damaging the structure. Let the market prove that support is holding before assuming the next move higher has begun.