XRP Price Faces Familiar Sell Signal, Hinting at Possible Correction

XRP is once again flashing a technical signal that, earlier in 2025, has preceded notable price declines — averaging around 25%. This alert comes as XRP’s Stochastic RSI continues to hover in overbought territory.

Overbought Conditions Triggered Past XRP Drops

The Stochastic RSI, a tool used to assess momentum by comparing the Relative Strength Index (RSI) to recent price ranges, has been showing readings above 80 since June 28 — a level considered overbought. Historically in 2025, similar signals have led to price corrections between 12% and 45%, with the average drop settling around 25%.

This pattern appears to be repeating in July, suggesting XRP might be heading for another dip if history holds true.

Bearish Technical Setup Could Send XRP to $1.14 or Lower

Technical analysis of XRP’s current structure reveals a descending triangle, a bearish chart pattern that often precedes downward breakouts. Should this formation play out, the price could potentially decline to $1.14, marking a 50% fall from current levels near $2.22.

Analyst Xanrox anticipates an even more substantial pullback. He points to a long-term ascending triangle that has been influencing XRP’s price trajectory since 2017, along with a large Fair Value Gap (FVG) created during this year’s sharp rally. Historically, such gaps tend to be “filled” after significant corrections, supporting a bearish case that targets the $0.60 region — a roughly 70% decline.

Bulls Still See Upside Potential

Despite the warnings, several analysts remain optimistic. Mikybull Crypto identifies a symmetrical triangle on the charts, suggesting a breakout to around $3.70 by September. Meanwhile, XForceGlobal uses Fibonacci extensions to forecast ambitious targets between $8 and $27.

Others highlight bullish technical indicators such as a falling wedge breakout and signs of whale accumulation, projecting price rebounds toward the $3.20 level.