Market-Wide Consolidation
The crypto market entered a period of consolidation over the weekend, with prices largely holding their ground after Friday’s surge. This calm trading session suggests that traders are now digesting the recent gains and awaiting new catalysts. This lull is widely seen as a healthy sign, preventing a rapid burnout of the rally’s momentum, and represents a crucial test of the market’s conviction.
Bitcoin (BTC) Holds Above $116K
Bitcoin’s price held steady around the $116,500 level, successfully defending the gains from the post-Powell rally. This stability is a positive sign for long-term holders, indicating that the recent move was a true sentiment shift and not just a short-lived spike. On-chain data revealed that a large portion of the recent gains remained in profit, suggesting strong conviction among traders, which may prevent a deeper correction, with analysts now eyeing the $120,000 mark as the next major target.
Ethereum (ETH) Shows Resilience
Ethereum’s price also showed resilience, trading in a tight range and holding firm above the key $4,800 support. This strength, despite profit-taking, points to continued institutional interest and a bullish outlook for the altcoin leader. It has also outperformed Bitcoin in its rebound, leading analysts to eye a potential retest of its all-time high, with some suggesting a move toward $5,200 if the current momentum holds.
XRP and Cardano Find Stability
XRP saw a modest increase and held firm, benefiting from the overall bullish sentiment. Cardano saw a slight retreat but remained in a key consolidation phase, with its fundamentals continuing to be a key focus for long-term investors. A report by CoinCentral highlighted that both tokens were still considered strong long-term picks for 2025, noting their robust communities and corporate backing. For XRP, institutional trading volumes spiked, reinforcing bullish sentiment.
Shiba Inu (SHIB) and Dogecoin See Mixed Performance
Shiba Inu and Dogecoin experienced slight pullbacks but held critical support levels. This short-term volatility is common for meme coins, and the community remains focused on upcoming developments for a potential catalyst. The stability around these support levels is seen as a sign of underlying strength despite the sell pressure, with a focus on the Shibarium Layer-2 expansion providing a bullish undercurrent.
Kaspa (KAS) & SUI: Development-Driven Narratives
Kaspa continues to garner attention from traders who are anticipating its upcoming smart contract launch on August 31, 2025. SUI also saw its price stabilize after recent gains, with its ecosystem’s strong growth continuing to attract new users and partnerships. This shift suggests that market attention is returning to fundamental developments after the excitement of the macro news cycle, and Kaspa’s planned smart contract functionality is seen as a potential game-changer.
Pi Network Update: Hackathon Kicks Off
The Pi Network community remains engaged as its Hackathon, which aims to boost dApp development, kicked off earlier in the week. While the token’s price saw a modest increase, the community is focused on the long-term utility that these new developments could bring. The success of the Hackathon will be a key factor in determining future price action, and its outcome could lead to a significant boost in community confidence.
The Path to Lower Rates
After a week of significant volatility and a dramatic rally, the crypto market is in a crucial phase of consolidation. The coming days will be key to determining if the market has the strength to push toward new highs or if profit-taking will lead to a deeper correction. The market remains sensitive to macroeconomic news, and a dovish Federal Reserve is still the most significant tailwind for crypto, providing a foundational argument for continued risk-on behavior, with the upcoming PCE inflation data release being the next major test.
Read more: Crypto Market Analysis (August 23, 2025): Bulls Seize Control in Post-Powell Rally
