**“This XRP Signal Historically Precedes 25% Drops — It Just Flashed Again in July”**
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**XRP traders, take note: A key technical signal that has historically preceded steep corrections just flashed again in early July 2025.**
Analysts are raising concerns after the **same pattern that led to an average 25% price drop earlier this year has reappeared** — pointing to potential downside unless momentum changes quickly.
### 📉 The Signal: RSI-Bollinger Band Divergence
According to on-chain and technical analysts, the warning is based on a recurring combo:
* **XRP's Relative Strength Index (RSI)** pushing above 70 (overbought)
* Simultaneous **rejection from the upper Bollinger Band**
* Accompanied by **declining volume and weakening Chaikin Money Flow (CMF)**
This combination previously appeared in **February, April, and late May**, all of which were followed by **10%–35% corrections** within days.
🧠 Why It Matters
While XRP has had a strong year — fueled by renewed optimism in its legal battle, CBDC partnerships, and possible institutional flows — **short-term traders may be facing headwinds**.
The July signal comes as XRP hovers near resistance around **\$0.65–\$0.70**, where heavy sell walls are historically clustered.
🕹️ What Traders Should Watch
* A **daily close below \$0.60** could confirm breakdown
* Support zones at **\$0.52 and \$0.45** remain key
* A sudden spike in volume could invalidate the signal — but until then, caution is advised
On the macro side, **regulatory news, Bitcoin ETF flows, or XRP ecosystem partnerships** could override the signal — but traders betting on a breakout might want to tighten stop-losses.
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📌 Bottom Line
XRP's red-hot rally may be due for a cooldown. With a historically reliable warning signal flashing again in July, **a 20–25% dip wouldn’t be out of the ordinary**.
**The trend remains bullish long-term — but this may be a time to zoom in, not out.**
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