XRP Correction Signals Healthy Pullback, Key Support Levels in Focus

XRP is undergoing its first notable correction after a parabolic rally that pushed the token above $3.60. The price has since retraced to around $3.10, but technical indicators suggest this is a healthy cooldown rather than a market collapse. Despite multiple red candles, XRP remains above its 21-day EMA at $2.91, a level that has historically provided reliable short-term support during uptrends.

The overall market structure for XRP remains bullish. The recent surge was driven by high trading volume, signaling accumulation rather than speculative excess. While volume has eased, it continues to show buying interest. The Relative Strength Index (RSI) has dropped to 59 from overbought levels, resetting momentum and potentially preparing the market for another move higher.

Key support lies in the $2.90–$3.00 range. Holding above this zone could allow XRP to form a new base for a breakout. A drop below the 50-day EMA at $2.49 would signal a deeper retracement and a return to the previous trading range.

For now, the correction appears controlled and typical of bullish cycles, where measured pullbacks often precede price reversals. If buying strength returns and crucial supports hold, XRP could resume its upward trajectory before August, although short-term sideways movement remains likely.

This consolidation phase may offer traders and investors a critical entry point ahead of potential bullish continuation, especially as market sentiment and technical levels align in XRP’s favor.