XRP Crypto News: Major Price Correction Imminent?

Key Takeaways

• Stochastic RSI indicates overbought conditions for XRP, increasing correction risks.

• Historical data shows average 25% pullbacks after similar RSI setups in 2025.

• Bearish patterns, such as the descending triangle, hint at potential drops to $1.14 or even $0.60.

• Some bullish analysts project XRP reaching as high as $8–$27 based on technical models.

Stochastic RSI Signals Overbought Conditions

The Stochastic RSI is a momentum oscillator that compares the current Relative Strength Index (RSI) to its recent range. It helps traders identify overbought or oversold conditions more precisely than the traditional RSI.

XRO/USD Daily Price Chart

Source: TradingView

On June 28, 2025, XRP’s daily Stochastic RSI entered the overbought zone (above 80) and has remained elevated since.

Historically, this setup has preceded sharp reversals in XRP’s price action.

XRP’s Previous Pullbacks

Based on 2025 price movements, XRP typically corrects between 12% and 45%, averaging about 25% during each Stochastic RSI unwinding.

This repeating fractal pattern indicates that another correction may be looming in the coming days or weeks.

XRP/USD Daily Chart Analysis

The daily chart structure suggests that unless XRP breaks decisively above resistance, the path of least resistance could be down. Price action continues to show bearish divergence, which often precedes significant sell-offs.

Bearish Technical Structures

Descending Triangle Breakdown?

XRP recently formed a descending triangle pattern after an impressive bull run earlier this year. These formations typically suggest bearish continuation when confirmed, with potential downside targets sitting around $1.14, a 50% decline from current levels.

A breakdown from this pattern could extend XRP’s correction far deeper than expected.

Long-Term Risk of A 70% Drop

Analyst Xanrox warns of a much broader correction stemming from a multi-year ascending triangle that has guided XRP’s macro price action since 2017. His analysis emphasizes a Fair Value Gap (FVG) formed during XRP’s parabolic surge to $3.40 earlier in 2025.

XRP/USDT Weekly Price Chart

Source: TradingView

Historically, such gaps are often revisited, which would imply a retest of the lower boundary near $0.60, representing a 70% drawdown from current price levels.

Bullish Outlooks Still Exist

Despite the rising bearish sentiment, some analysts remain optimistic:

• Mikybull Crypto: Sees a symmetrical triangle targeting $3.70 by September.

• XForceGlobal: Forecasts an extended rally to between $8 and $27, citing Fibonacci extension levels.

• Other traders point to a falling wedge breakout and increasing whale accumulation, projecting a potential move back to the $3.20 range.

With conflicting signals, traders are advised to watch key support and resistance zones closely.

FAQ

What is the Stochastic RSI and why does it matter for XRP?

The Stochastic RSI is a momentum indicator that measures how overbought or oversold an asset is. When XRP’s Stochastic RSI exceeds 80, it often signals a potential price pullback.

How much could XRP fall based on current technical analysis?

Depending on the analyst, XRP could correct by 25% to 70%. Short-term targets suggest $1.14, while long-term bearish outlooks project a potential move to $0.60.

Is there still a bullish case for XRP?

Yes. Some analysts believe XRP could rally to $3.70, $8, or even higher based on symmetrical triangle formations and Fibonacci extensions. Accumulation by whales may also support upward momentum.