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.
$XRP (3-Day scale) – Posted H. Bearish Divergence & GREY BOX for Patreon/Subs last week during the DUMB MONEY hype!
Glad we knew the 23% correction was coming!🎯The lower we go, the higher the breakout will be!
Dumb Money who got REKT in a FULL-BLOWN BULL MARKET will DENY lol!… pic.twitter.com/A312cAFwlS
— JD 🇵🇭 (@jaydee_757) January 19, 2026
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.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
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.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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