XRP saw a decrease of over 4% in the last 24 hours, leading the decline among major cryptocurrencies as the overall market slows down following last week’s significant rally. Bitcoin is currently above $104,000, and traders are anticipating a steady increase beyond $105,000, which is now a key psychological and technical resistance level.

The total market capitalization of the crypto market dropped by 2% to $3.3 trillion, according to CoinGecko. Ethereum (ETH) and Solana (SOL) are also pausing near their 200-day moving averages, indicating a possible period of consolidation or a short-term pullback.

Alex Kuptsikevich, FxPro’s chief market analyst, noted that Bitcoin has been gradually forming a peak over the past week, usually a sign that a correction is imminent. The Crypto Fear & Greed Index slightly decreased from 73 to 70, remaining in the “greed” territory but showing a decrease in momentum.

According to Augustine Fan from SignalPlus, the markets may continue to edge higher unless equities experience a downturn. He warned that Bitcoin may face challenges breaking through the interim resistance at $105,000, while Ethereum could benefit more in the short term due to improving inflows and strong performance in altcoins.

Fan also highlighted a significant shift in capital allocation towards crypto, describing it as a more structural move favoring assets like emerging markets, precious metals, and cryptocurrencies to hedge against geopolitical and currency risks.

K33 Research observed that Bitcoin’s recent surge seems to be driven by spot market demand rather than excessive leverage, with retail investors and wealth managers from Asia contributing to sustaining the bullish sentiment. Nick Ruck from LVRG Research mentioned that the market slowdown may be due to caution ahead of upcoming macroeconomic data and concerns about the long-term effects of recent U.S. trade agreements.

The current market situation indicates a wait-and-see approach just below critical breakout levels, with the next significant move expected to dictate the overall market direction.