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It is much too soon to declare the rally over even though XRP's price chart shows a noticeable decline. There is more to the situation than just price action, even though XRP has retraced to $3.44, down about 3% on the day. In terms of technical analysis, XRP is still far above important support levels. The pullback appears to be less of a complete reversal and more of a temporary cooldown after a powerful rally.
There would inevitably be some profit-taking after the asset increased by over 70% in July. Although the RSI is still high at 78, which usually indicates overbought conditions, high RSI can last much longer during strong bull phases without causing abrupt reversals. The on-chain data is more significant.
The number of payments on July 21 surpassed 1.35 million, according to XRP Ledger statistics. This significant amount supports the asset's continued demand and usefulness. Even if the chart shows a daily dip, the underlying network activity is surging, which rarely aligns with the beginning of a market top.
Instead of a collapse, increasing transaction volume frequently precedes additional price acceleration. Furthermore, XRP has only recently emerged from a range of prolonged accumulation. This indicates that while most short-term traders are now profitable, long-term holders are probably only now beginning to think about realizing their profits.
Structural resistance is minimal above $3.70 until it approaches $4.00, which is still a psychological barrier. The market may soon start to move toward $5.00 if that level is cleared. In conclusion, the short-term correction of XRP is a typical market response rather than a trend reversal. Strong on-chain metrics and a stable price structure are still there. The rally is just taking a breather; it will not end until volume drops and XRP breaks below important EMAs, which are located between $2.80 and $3.00.
Vladislav Sopov
U.Today Editorial Team