XRP and Dogecoin Erase Explosive Weekly Gains—Should Traders Worry?
If you bought into the $XRP or Dogecoin hype recently, you might be asking yourself what went wrong. You’re also probably a lot less patient than the holders who bought the 2018 top.
Both XRP and Dogecoin had experienced meteoric rises in price in that last few weeks, only to disappoint traders who thought it’d be “up only” from here. Both coins are now down double digits over the last seven days, with XRP sinking 12% and $DOGE down a crushing 18%.
So, is it over? As always, it’s complicated. Let’s zoom out:
The cryptocurrency market is catching its breath after a volatile week. At the macro level, President Donald Trump just announced a trade deal with the European Union, recalibrating the global economic landscape. The agreement's 15% flat tariff structure has removed uncertainty that had been weighing on risk assets.
Bitcoin trades near $118,000, down from its all-time high of $123K recorded on July 14, while Ethereum hovers around the $3,800 price zone. The broader market seems to be in a consolidation phase, with more than $539.24 million in liquidations last week as overleveraged positions got flushed out.
Still, it’s hard for most crypto market observers to be anything but optimistic: The combination of geopolitical pragmatism and regulatory progress has created fertile ground for crypto adoption. With Bitcoin now playing a more important role in mainstream portfolios, altcoins such as Ethereum, Solana, XRP, and others now have more legitimacy than ever, despite their greater volatility.
Case in point: Over on Myriad, a prediction market developed by Decrypt’s parent company Dastan, traders still believe Ethereum hits a new all-time high by the end of the year, placing the odds at a convincing 68%.As a general rule, when traders see stability, many start flirting with riskier markets.
XRP price: Consolidation after the surge
XRP currently trades at $3.17, showing a -2.06% change on the weekly candlestick currently in formation and a 12% drop in price over the last seven days. But what did you expect after a meteoric rise? What goes up always comes back down.
The weekly chart reveals several technical indicators worth noting for traders monitoring the coin's next moves.
XRP price data. Image: TradingView
The Average Directional Index, or ADX, sits at 21, below the 25 threshold that typically confirms strong trend momentum. ADX is how traders measure the strength of a price trend, regardless of direction. This reading for XRP suggests the current bullish trend may be starting to lose its strong directional force—when ADX falls below 25, it often indicates the market is moving sideways or preparing for a new directional move. Traders typically wait for ADX to rise above 25 to confirm a new trend is establishing.
The Relative Strength Index, or RSI, however, indicates $XRP maintains momentum in the upper range with 64 points without reaching overbought territory above 70. RSI is like a temperature gauge for markets for traders, measuring how hot a given asset might be getting from a scale of 0 to 100. At 64, the token isn't yet experiencing extreme buying pressure that often precedes pullbacks, and the overbought pressure may be slowing down.
Exponential Moving Averages, the average price of an asset over a set period of time, are other key indicators for most experienced traders. XRP’s EMAs show the coin trading above both the 50-week and 200-week EMAs. The 50-week EMA appears to be positioned above the 200-week EMA, which technical analysts often view as a bullish market structure.
The Squeeze Momentum Indicator shows “off” status on the weekly chart, indicating that the recent period of price compression has ended and volatility has been released.
Considering all these indicators together, the price movement is still respecting the support set by its double bottom pattern, so it still has space to correct (as it should) without losing its bullish outlook. When the ADX loses strength and the Squeeze momentum indicator also turns down, the probabilities for a correction increase.
What does that all add up to? Most traders would interpret this as: more pain first, then more gains later.
Key levels to watch:
Resistances:
Immediate: $3.30 (recent rejection point visible on chart)
Stronger: $3.50 (next major resistance zone)
Supports:
Immediate: $3.00 (psychological level and consolidation area)
Stronger: $2.50 (major support zone from previous price action)
Dogecoin price: Waiting for momentum
Dogecoin trades at $0.23283 with another double digit loss on the weekly chart, being the worst performing coin in the top 10 by market cap with an 18% drop in the last seven days. XRP and Cardano are the other coins with double-digit losses in the top 10.
The meme coin's technical indicators present a mixed picture as it consolidates above the $0.20 level.
Dogecoin price data. Image: TradingView
The ADX at 17 indicates no established trend—readings below 20 suggest the market lacks clear directional conviction. This low ADX reading is common during consolidation periods when neither buyers nor sellers have taken control of the price action.
The RSI at 54 places DOGE in neutral territory, neither overbought nor oversold. This middle-ground reading indicates balanced momentum between buyers and sellers at current levels.
The relationship between DOGE's 50-week EMA and 200-week EMA shows these moving averages converging. While they appear close on the chart, traders typically wait for a clear crossover with separation before confirming a major trend change.
The Squeeze Momentum Indicator showing “on” status indicates the token is currently experiencing price compression. This suggests lower volatility that often precedes a larger move in either direction.
In other words, traders are expecting a big move here to come, but they’re ready to say in which direction yet.
Note that DOGE is also experiencing a double bottom pattern (prices creating a W shaped pattern in the chart above), which traders usually interpret as bullish. Also, both supports have been respected in the weekly performance. So, unless things change and get even worse for DOGE holders, the price of DOGE could dip as much as another 10% without traders having to worry about a trend reversal just yet.
Key levels to watch:
Resistances:
Immediate: $0.25 (recent high area on chart)
Stronger: $0.30 (major psychological resistance)
Supports:
Immediate: $0.20 (clear support level and psychological number)
Stronger: $0.15 (major support zone in the double bottom area)