Analyst On Recent XRP Crash: The Lower We Go, the Higher the Breakout Will Be

Cryptocurrency markets often test traders’ patience and discipline, especially when price movements contradict prevailing optimism. Short-term corrections can rattle confidence, but experienced analysts emphasize structural setups over temporary sentiment swings. XRP’s recent pullback illustrates how deeper technical dynamics can shape potential opportunities, setting the stage for significant upside once conditions align.

JD recently shared his analysis on X, drawing attention to a bearish divergence on XRP’s 3‑day chart and highlighting a key support area he referred to as the “grey box.” According to JD, this corrective phase was predictable, occurring amid what he described as “DUMB MONEY” hype. By anticipating the 23% decline, JD suggested that the pullback could actually strengthen the conditions for a more substantial breakout in the near future.

Understanding the Recent Correction

XRP’s correction followed a period of heightened market enthusiasm, driven by broader crypto rallies and institutional flows. The token fell from recent highs near $2.15 to lows around $1.84, reflecting profit-taking and short-term repositioning by traders.

While some interpreted this decline as a bearish signal, JD framed it as a necessary consolidation, allowing market participants to reprice risk and prepare for the next leg upward.

Technical indicators support this interpretation. The bearish divergence JD identified occurs when price forms lower highs while momentum indicators weaken, signaling that buying pressure is temporarily exhausted.

Historically, such divergences often coincide with corrective phases that precede stronger upward moves, as markets absorb excess supply and build liquidity at critical support zones.

The “Lower Before Higher” Thesis

JD emphasized that the depth of a correction can determine the strength of a subsequent breakout. Deeper consolidation allows for accumulation by long-term holders and institutional participants, creating a foundation for renewed bullish momentum.

If XRP maintains support near the $1.80–$2.00 range while building volume, the market may position itself for a decisive rally once resistance levels break, potentially exceeding previous highs.

Market Context and Strategic Implications

Beyond technical signals, broader market conditions—such as ETF inflows, on-chain demand, and macroeconomic sentiment—will influence XRP’s trajectory. Traders who understand the interplay of correction, accumulation, and breakout dynamics can navigate volatility more effectively.

JD’s perspective highlights the value of patience and structural awareness: while short-term losses may sting, they often precede periods of substantial gains in well-positioned assets.

By analyzing corrections within a wider market and technical context, XRP holders can view pullbacks not as setbacks but as strategic opportunities. As JD suggests, the lower the token dips within its support framework, the higher the potential breakout may be, reinforcing the importance of disciplined trading and a long-term perspective.