XRP News Today: XRP and Dogecoin Erase 12% and 18% Gains Amid Market Consolidation

XRP and Dogecoin have erased significant weekly gains amid a broader cryptocurrency market consolidation, sparking questions among traders about the sustainability of recent price surges. XRP, the 11th-largest digital asset by market capitalization, has fallen more than 12% in seven days, trading at $3.17, while Dogecoin, a meme-inspired token, has declined even more sharply, with an 18% drop over the same period. The sell-off follows a period of rapid appreciation, raising concerns about whether the momentum was driven by speculative trading rather than fundamental demand.

The broader market context reveals mixed signals. Bitcoin, the largest cryptocurrency, has retreated from its all-time high of $123,000 to $118,000, and Ethereum is hovering near $3,800. The market appears to be in a consolidation phase, with over $539 million in liquidations reported last week as leveraged positions were unwound. Meanwhile, macroeconomic developments, including a newly announced trade deal between former U.S. President Donald Trump and the European Union, have reduced uncertainty for risk assets. The agreement’s 15% flat tariff structure has been interpreted as a stabilizing factor for global markets [1].

Technical analysis of XRP indicates a potential correction phase. The Average Directional Index (ADX) stands at 21, below the 25 threshold typically used to confirm strong trend momentum, suggesting the bullish trend may be losing directional strength. The Relative Strength Index (RSI) at 64, while not in overbought territory (above 70), indicates moderate upward momentum. Exponential Moving Averages (EMAs) show XRP trading above both the 50-week and 200-week averages, with the 50-week EMA positioned above the 200-week EMA—a structure often viewed as bullish. The Squeeze Momentum Indicator, currently “off,” signals that recent price compression has ended, potentially signaling increased volatility ahead [1].

For Dogecoin, the technical outlook is more uncertain. Its ADX reading of 17 suggests no established trend, consistent with a consolidation phase. The RSI at 54 places the token in neutral territory, reflecting balanced buying and selling pressure. The 50-week and 200-week EMAs are converging, but traders typically wait for a clear crossover to confirm a trend shift. The Squeeze Momentum Indicator is “on,” indicating ongoing price compression and lower volatility, a precursor to potential larger moves in either direction. Dogecoin’s double-bottom pattern remains intact, with support levels at $0.20 and $0.15 holding for now. However, a further 10% decline would test the robustness of this bullish formation [1].

Market sentiment remains cautiously optimistic despite the recent pullbacks. A prediction market developed by Decrypt’s parent company, Dastan, shows traders assigning a 68% probability to Ethereum reaching a new all-time high by year-end. This optimism is fueled by geopolitical stability and incremental regulatory progress, which are seen as catalysts for mainstream crypto adoption. Altcoins like XRP and Dogecoin, while more volatile, are gaining legitimacy as Bitcoin’s inclusion in institutional portfolios broadens the crypto asset class [1].

Key price levels to monitor for XRP include immediate resistance at $3.30 and $3.50, with support at $3.00 and $2.50. For Dogecoin, resistance is expected at $0.25 and $0.30, while support lines are drawn at $0.20 and $0.15. Traders are advised to watch ADX and Squeeze Momentum Indicator signals for directional clues, as these metrics often foreshadow trend reversals or continuations.

The sell-off in XRP and Dogecoin reflects a broader market recalibration rather than a systemic breakdown. While short-term pain is evident, the technical setups suggest these assets could still test prior resistance levels if broader market conditions stabilize. Investors are urged to remain vigilant about leverage and avoid overcommitting to positions during periods of consolidation.

Source: [1] [title: XRP and Dogecoin Erase Explosive Weekly Gains—Should Traders Worry?] [url: https://decrypt.co/332097/xrp-dogecoin-price-weekly-gains-analysis]