Bitcoin, Ethereum, XRP Rally Slows... Signs of Cooling Demand Across the Market

▲ Bitcoin (BTC), Ethereum (ETH), XRP (XRP)/ChatGPT generated image ©

As the rallies of Bitcoin (BTC), Ethereum (ETH), and XRP (Ripple) enter a consolidation phase, a wait-and-see sentiment is spreading across the overall market once again.

According to investment media FXStreet on May 7 (local time), Bitcoin surged to $82,850 this week, marking a three-month high, but its upward momentum is now slowing above the $81,000 level. The outlet reported that demand from both retail and institutional investors is cooling simultaneously, with major altcoins like Ethereum and XRP showing similar trends.

The slowdown in Bitcoin spot ETF inflows was first identified as a market burden. According to SoSoValue, Bitcoin spot ETFs recorded net inflows of $630 million last Friday, $532 million on Monday, and $467 million on Tuesday, but sharply dropped to $46 million on Wednesday. Cumulative net inflows totaled $59.76 billion, with net assets amounting to $108.76 billion. In the derivatives market, open interest also decreased from $64.17 billion to $62.12 billion in a single day, confirming a cooling trend in investment enthusiasm.

Ethereum is also being affected by the slowdown in Ethereum spot ETF inflows. Inflows on Wednesday amounted to only $12 million. Previously, approximately $101 million flowed in on Friday, $61 million on Monday, and about $98 million on Tuesday, but the growth rate has sharply decelerated. Current cumulative net inflows are $12.19 billion, with net assets totaling $14.01 billion. ETH is currently trading around $2,338, maintaining above its 50-day Exponential Moving Average (EMA) of $2,266, but has failed to break through its 100-day EMA of $2,344 and 200-day EMA of $2,546. The Moving Average Convergence Divergence (MACD) continues to show a bearish trend, and the Relative Strength Index (RSI) indicated a near-neutral trend at the 55 level.

In contrast, XRP saw relatively robust ETF inflows. XRP spot ETFs recorded net inflows of $3.87 million on Monday, $11.28 million on Tuesday, and $13.03 million on Wednesday. Cumulative net inflows totaled $1.32 billion, with net assets amounting to $1.11 billion. Open interest in the XRP derivatives market also increased from $2.59 billion to $2.61 billion, indicating expanding retail investor participation. However, the XRP price is testing the 50-day EMA support level around $1.41, and with it remaining below the 100-day EMA of $1.50 and the 200-day EMA of $1.74, medium-to-long-term bearish pressure persists.

Technically, Bitcoin's 200-day EMA of $82,153 is identified as a key resistance level. FXStreet analyzed that a breakthrough of this range on a daily chart could open up possibilities for further gains, but conversely, if the support zone between $75,206 and $76,200, where the 50-day and 100-day EMAs are located, collapses, downward pressure could intensify. For XRP, the sustainability of the $1.41 support level was also cited as a key variable determining its short-term direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*