Why Traders Are Loading up on XRP at $1.34, Bitcoin Triggers Major Red Flag for Lower Low, Is It Time to Sell Solana for Hyperliquid (HYPE)? – Morning Crypto Report

TL;DR

• XRP Holds Key Support: Sustained by 4 weeks of uninterrupted ETF inflows, XRP establishes a strong local demand zone at $1.34, with immediate technical upside targets set at $1.37 and $1.40.
• Bitcoin Triggers Bearish Signal: BTC broke below critical right-shoulder support at $71,500–$73,900, signaling a structural shift toward lower lows fueled by a 10-day, $2.9 billion institutional ETF exit.
• HYPE Targets Solana: Backed by deflationary fee-buybacks and a $3B ecosystem fund, Hyperliquid (HYPE) hit an all-time high of $70, with Arthur Hayes projecting a rally to $150 to absorb Solana’s market share.
• Crypto Market Outlook: The broader crypto market faces a decisive short-squeeze or breakdown ahead of upcoming U.S. macroeconomic triggers, specifically the Fed’s Beige Book and U.S. unemployment data (consensus 4.3%).

Hourly chart and four weeks of ETF inflows save XRP at $1.34

While institutional capital is fleeing flagship cryptocurrencies, XRP has found a point of support in the combination of a strong hourly pattern and four weeks of uninterrupted ETF inflows, turning the $1.34 mark into a potentially ideal buying zone, according to Ali Martinez’s forecast.

While spot Bitcoin ETFs are recording their third week of outflows, minus $1.42 billion over the past seven days to $94.17 billion, and Ethereum funds are losing $24.4 million, the XRP ETF sector is showing enviable immunity, with positive dynamics here uninterrupted for a full month. This fundamental optimism is what supports the technical picture on the charts.

As Ali Martinez illustrates, XRP is clearly holding the lower boundary of an ascending channel on the hourly timeframe. A strong local demand zone has formed at $1.34, with market participants actively accumulating volume and expecting a rebound. If this support withstands the current pressure, the first profit-taking targets will be $1.37 and $1.40.

Bitcoin gives way to AI? Why Aksel Kibar’s chart predicts a collapse

Another well-known technical analyst, Aksel Kibar, has identified a critical signal for Bitcoin’s long-term decline, pointing to the breakdown of the bullish market structure and the transition to the formation of lower lows.

According to Kibar’s current analysis, the price broke through the key support of the right shoulder of the “head and shoulders” pattern just below the $71,500–$73,900 zone, fully invalidating the trend-continuation scenario and activating the pattern’s invalidation level. Kibar emphasizes that this technical failure on the chart directly reflects the fundamental flight of capital from the cryptocurrency market.

In particular, the formation of lower lows on the chart coincided with a 10-day streak of outflows from spot Bitcoin ETFs, during which investors withdrew $2.9 billion, or 46,000 BTC. This mass dumping of coins pushed the year-to-date inflow balance into negative territory and deprived Kibar’s chart of institutional support.

Kibar’s current model also clearly illustrates the global rotation of liquidity. While Bitcoin is losing ground under horizontal resistance, the S&P 500 and Nasdaq are updating all-time highs thanks to money flowing into AI-company stocks.

This decline in interest in the crypto market led to Bitcoin dominance falling below 60%, confirming the analyst’s logic about weak price dynamics.

The internal state of the Bitcoin network now fully mirrors Kibar’s bearish outlook. Because of the price drop below the chart’s critical levels, more than 40% of the market supply of coins is now at a loss. 

The situation has already led to a 9% decline in the network hashrate, as miners turn off equipment and, following the general market trend of capital moving elsewhere, repurpose their capacity for AI data centers, ultimately depriving Bitcoin’s chart of chances for a quick return to growth.

Arthur Hayes puts Hyperliquid over Solana

By the end of May 2026, BitMEX founder Arthur Hayes is predicting a wave of capital rotation, saying that the token of derivatives platform Hyperliquid, HYPE, will inevitably absorb Solana’s market share. The statement came as HYPE updated its all-time high at $70, demonstrating strong resilience against the trend.

Arthur Hayes publicly stated that crypto market participants should think bigger. Looking at the current list of outright garbage coins, he believes HYPE should at least overtake SOL before this bull market ends. As a result, Hayes set a medium-term target for HYPE at $150.

Technically, Hayes’s forecast is confirmed by the daily HYPE/USD chart, which around $69.66 almost exactly copies Solana’s parabolic fractal from late 2023 to early 2024. A breakout of the key $100 zone opens the road to the $140–$160 range, fully matching Hayes’s targets.

At the moment, Solana’s market capitalization stands at about $47.73 billion at a price of $82.62, while Hyperliquid is valued at $15.54 billion at a price of $69.72. But HYPE has a much smaller capitalization and deflationary tokenomics, where up to 99% of fees go toward automatic token buybacks.

However, buying HYPE at an absolute peak, despite Hayes’s calls, carries the risk of a local technical correction.

Crypto market outlook: Capital rotates into stablecoins while BTC defends $73,800

The current compression and risk-off phase will resolve in the coming days, as investors await the release of U.S. macroeconomic reports and the outcome of regulatory debates in Washington, which will either trigger a major short squeeze or force large funds into deep defense.

Key checkpoints:

• Bitcoin price: BTC is consolidating at $73,828, trapped between support at $70,000–$71,400 and resistance at $75,000–$76,000. Against the backdrop of 10-day ETF outflows of $2.9 billion, derivatives show a large $300 million long interest defending the current range.
• Stablecoin risk-off move: USDC dominance has returned above the critical 10.5% level, while USDT issuance fell by $1.2 billion in one day. Large institutional capital is moving into fiat before the release of key U.S. statistics.
• Macro risks on June 3 and 5: On Wednesday, the Fed’s Beige Book will be released, and on Friday, U.S. unemployment data will come out, with consensus at 4.3%. A strong labor market will keep rates high and pressure the market, while rising unemployment will trigger an immediate rally in risk assets.

You Might Also Like