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#XRP The pullback of XRP Token in the early hours today may be a normal phenomenon, mainly based on the following reasons:
- Profit taking after a significant increase in the early stage: Recently, the price of XRP has shown strong momentum, breaking through the range of $2.95 to $3.03. On July 17, influenced by rumors of Federal Reserve Chairman Powell possibly stepping down, the price soared and broke through the $3 mark. In the short term, a considerable amount of profit has been accumulated, and investors' willingness to take profits is strong, which can easily trigger a price pullback.
- Normal technical correction: After XRP breaks through key resistance levels, there is usually a pullback confirmation process. From a technical indicator perspective, it continues to trade above the 20 and 50 EMA in the 4-hour time frame, but the Bollinger Bands show signs of new expansion. After a rapid price increase, the indicators need time to recover and digest the previous upward momentum. This pullback can be seen as a normal technical correction.
- Market overall sentiment impact: The cryptocurrency market has a high overall volatility and strong correlation. In the early hours of today, the cryptocurrency market performed weakly, with mainstream coins like Bitcoin also in a weak state. Under the overall bearish sentiment in the market, the pullback of the XRP Token is in line with market trends.
- Price reversal after overbought: On June 28, the daily chart reading of XRP entered the overbought zone, above 80, and remained there. During the period of 2025, when the daily stochastic indicator of XRP retreated from overbought levels, the average price dropped by 25%. A similar pattern reappeared in July, increasing the likelihood of a pullback.
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