Peter Smith
XRP is down 3% today, trading at $3.44, but don't panic just yet. The recent pullback looks more like healthy profit-taking after a massive 70% July rally rather than a trend reversal.
XRP (Ripple) Price Shows Normal Correction After Strong Run
Sure, XRP's chart doesn't look pretty right now, but the bigger picture tells a different story. The token is still sitting comfortably above key support levels, and honestly, a correction was bound to happen after such explosive growth.
The RSI is running hot at 78, which typically screams "overbought." But here's the thing - during strong bull runs, these elevated levels can stick around much longer than you'd expect. It's not unusual to see RSI stay high for weeks when momentum is truly strong.
Looking at resistance levels, XRP has a clear path above $3.70 until it hits the psychological $4.00 barrier. Break through that, and we could easily see a run toward $5.00. The current dip? It's just short-term traders cashing in on their gains - totally normal market behavior.
XRP Network Activity Tells Real Story
Here's where things get interesting. While the price dropped, XRP Ledger processed over 1.35 million payments on July 21 alone. That's massive volume, and it shows people are actually using the network, not just speculating.
When network activity surges while prices dip, it usually means one thing - more upside is coming. This kind of disconnect rarely happens at market tops. Instead, rising transaction volume often sets the stage for the next leg up.
Plus, XRP just broke out of a long accumulation phase. Most long-term holders are probably just starting to think about taking profits, while short-term traders have already made their money. There's still plenty of room to run.
XRP (Ripple) Price Rally Just Taking a Breather
Bottom line: this correction is business as usual, not a trend change. The fundamentals are solid, network activity is booming, and the technical structure remains intact.
The rally won't be over until we see volume dry up and XRP breaks below those crucial EMAs sitting between $2.80 and $3.00. Until then, consider this pullback a healthy pause before the next move higher. Smart money isn't panicking - and neither should you.
Peter Smith
