XRP and Dogecoin See Brutal Corrections

After a meteoric rise, XRP and Dogecoin have just suffered a brutal correction, sending new entrants back to their uncertainties. This sudden reversal highlights the fragility of unconsolidated gains and calls into question the strength of the rebound observed in recent weeks.

In Brief

• XRP and Dogecoin sharply erased their weekly gains, with respective drops of 12% and 18%.
• Technical analysis shows a weakening upward trend for XRP, but the structure remains intact.
• On the Dogecoin side, indicators reveal no clear direction, although bullish signals remain.
• Despite volatility, several macroeconomic factors support the market, including a new trade agreement between the United States and the EU.

A Technical Halt: XRP and Dogecoin Erase Their Gains

Investors hoping for an immediate continuation of the rise after the rebound were quickly disappointed. Indeed, XRP lost 12% over the past seven days, while Dogecoin fell 18%, becoming the worst performer in the top 10. These declines come after a spectacular surge, particularly frustrating for traders who entered the market late. The crypto market is catching its breath after a volatile week, with a purge effect on overly exposed positions. In this context, both XRP and DOGE illustrate the harsh reality of a return to the mean in such an unstable environment. Technical indicators confirm this pullback while offering insights for the future. Here are the most significant signals observed on the two assets:
• XRP: ADX at 21, indicating a weakening uptrend (below the critical threshold of 25). RSI at 64, showing positive momentum but no overbought condition. The 50 and 200-week EMA moving averages reveal an intact bullish structure with the price above both. The Squeeze Momentum Indicator is off, as the squeeze is over and volatility returns.
• Dogecoin: ADX at 17, indicating an absence of a dominant trend, typical of a consolidating market. RSI at 54, a neutral condition with no excessive buying or selling pressure. The 50 and 200-week EMA moving averages are converging. The Squeeze Momentum Indicator is on, with an ongoing squeeze signaling an upcoming move.
These elements confirm a consolidation scenario after a too rapid rise. For XRP, the bullish structure remains intact despite the pullback. Regarding Dogecoin, signals are more neutral, but the formation of a double bottom on the weekly chart is seen as potentially bullish if supports hold.

Market Consolidation and Favorable Signals

Beyond the technical signals specific to XRP and Dogecoin, the pullback of these two assets fits into a general trend affecting the entire market. Bitcoin fell below $118,000, down from a peak of $123,000 reached on July 14. Ethereum, for its part, is trading around $3,800, relatively stable. This consolidation phase has been marked by more than $539 million in liquidations, a direct consequence of excessive leverage on many positions. This widespread pullback is therefore not specific to XRP or DOGE but reflects an overall market dynamic. In this context, some signals still encourage optimism. The trade agreement announced between the United States and the European Union, establishing a single 15% tariff, reassured the markets. This decision removed an uncertainty weighing on risk assets. The return of some geopolitical stability favors cryptocurrencies. On Myriad, the predictive platform of the Dastan group, 68% of traders believe that Ethereum will reach a new all-time high by the end of the year. Finally, the presence of a double bottom on the weekly charts of XRP and Dogecoin, often seen as a bullish signal, suggests that key technical supports hold. These elements reveal a scenario where the current correction could turn into a preparation phase before a new bullish cycle. The market does not appear to have broken its fundamental structures, and supports remain largely respected.

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Frequently Asked Questions (FAQ)

Understanding the Corrections

Q: Why did XRP and Dogecoin experience such sharp price drops? A: Both XRP and Dogecoin saw significant corrections after a rapid price increase. This is a common market phenomenon known as a "pullback" or "correction," where speculative gains are pared back, and the market takes a breather. Factors like profit-taking by early investors and a general market "purge" of over-leveraged positions can contribute to these drops. Q: What do the technical indicators suggest for XRP and Dogecoin? A: For XRP, indicators like the ADX suggest a weakening uptrend, but its overall bullish structure, supported by EMAs, remains intact. Dogecoin shows no clear dominant trend with its ADX, indicating consolidation, though a potential double bottom formation on its weekly chart could be a bullish signal if support levels hold. Q: Are these corrections specific to XRP and Dogecoin, or part of a broader market trend? A: The corrections in XRP and Dogecoin appear to be part of a broader market consolidation. Other major cryptocurrencies like Bitcoin also experienced dips, indicating an overall market trend rather than isolated events for these two altcoins. Q: What are the implications of these technical indicators for future price movements? A: The technical indicators suggest a period of consolidation. For XRP, the intact bullish structure indicates potential for future recovery, while Dogecoin's neutral signals combined with a potential double bottom suggest that its future direction will depend on maintaining key support levels.

Market Influences

Q: What macroeconomic factors are supporting the crypto market despite these corrections? A: Favorable macroeconomic factors include the new trade agreement between the United States and the EU, which has reduced market uncertainty. This, along with a general return of geopolitical stability, can positively influence risk assets like cryptocurrencies. Q: How does market liquidation affect the price of cryptocurrencies like XRP and Dogecoin? A: Significant liquidations, such as the reported $539 million, directly impact market prices by forcing the sale of assets, which can exacerbate downward price movements during a correction.

Crypto Market AI's Take

The recent sharp pullbacks in XRP and Dogecoin highlight a classic market dynamic: the volatility inherent in speculative assets. While the technical indicators paint a picture of consolidation, the underlying macroeconomic signals, such as the US-EU trade agreement, suggest a potentially supportive environment for risk assets. At Crypto Market AI, we leverage advanced AI agents and data analytics to navigate these turbulent waters. Our tools aim to identify such consolidation patterns and potential reversals, helping users make more informed decisions. For instance, our AI-driven analysis can provide insights into the strength of support levels and the probability of bullish signals emerging, as seen with the double bottom formation for Dogecoin. Understanding these market movements is crucial, and our platform is designed to equip you with the intelligence needed to approach such volatility strategically. You can explore more about how AI is transforming market analysis in our AI Agents section or learn about cryptocurrency trading fundamentals on our platform.

More to Read:

• Why is Crypto Down Today?
• XRP Historic 18 Percent Drop, 6.7 Percent Rebound: Bear Trap July 2025
• Bitcoin News Today: Bitwise CIO Declares Four Year Crypto Cycle Obsolete Citing Institutional Adoption and Regulatory Advances

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Source: Originally published at Cointribune on Tue, 29 Jul 2025