XRP News Today: XRP Analysts Warn of 35-46% Correction Risk or $4.42 Target as Key Resistance Tested

A market strategist has issued a cautionary analysis for XRP holders, emphasizing critical technical levels and potential market dynamics that could influence the cryptocurrency’s trajectory. Steph Is Crypto, a prominent crypto analyst, highlighted a key resistance zone on XRP’s monthly chart, which has been tested three times since the 2020 bull market. The analyst noted that a breakout above this level could invalidate prior bearish cycles and propel XRP toward double-digit valuations, while a failure to clear it risks renewed downward pressure. The resistance zone, formed by a rising trendline, has historically coincided with major market shifts—initially marking the start of a prolonged bear market in 2020 and subsequent rejections in late 2024 to early 2025. Steph emphasized that a strong weekly close above the trendline would signal a pivotal reversal in sentiment. Conversely, a third rejection could trigger a correction, though the analyst assessed a higher probability of a breakout, citing momentum in July’s monthly candlestick and rapid consecutive tests of the level [1].

On shorter timeframes, Steph identified a double bottom pattern on the 4-day chart, with a breakout neckline currently at $3.48. This pattern suggests a potential target of $4.42, even as broader crypto markets exhibit bearish conditions. The $3.00 level was underscored as a critical support area, having previously hosted significant price interactions and a false breakout earlier this year. The analyst posited that a temporary pullback, driven by overbought sentiment or extreme market greed, could reignite buying interest at this level.

Momentum indicators further complicate the outlook. While the MACD on XRP’s weekly chart remains below 2024’s peak, suggesting unresolved upside potential, the stochastic RSI has entered overbought territory on both weekly and two-month timeframes. Historical precedents show such conditions often precede corrections of 35% to 46% during prior peaks. Steph noted a bearish divergence in December–January 2025, where prices hit higher highs while the stochastic RSI recorded lower highs, signaling weakening momentum. Despite this, the analyst maintained a near-term bullish stance, targeting $4–$5 as potential resistance zones that could trigger a short-term correction before resuming the uptrend.

The altcoin season index was cited as a key metric for Q3–Q4 2025, with readings above 75 potentially signaling a broader altcoin correction. Steph advised traders to manage profits incrementally as XRP approaches these critical levels, cautioning that the current rally may extend through mid-2025 but warned of “market exhaustion” signals. The analysis explicitly disclaimed financial advice, urging investors to conduct independent research [1].

Separately, Ripple has intensified warnings about scams impersonating its brand on YouTube, with fraudulent accounts using its official username to solicit XRP transfers to unauthorized wallets. The company reiterated it would never request token transfers and updated its resources to help users identify scams. Community members criticized social media platforms for insufficient enforcement, with some advocating legal action against YouTube and X, which have previously allowed deepfake content featuring Ripple’s CEO. Meanwhile, Ripple co-founder Chris Larsen’s movement of $175 million in XRP to exchanges sparked speculation about a potential sell-off, though legal experts dismissed such claims, citing escrow safeguards. XRP’s price fell 6% amid delays in the SEC’s approval of a crypto ETF, though brief gains of 3.14% in late July offered mixed signals [1][3].

Analysts remain divided on XRP’s long-term prospects. One analyst projected a 430% surge based on its 80% rally over a month, while others cautioned against legal uncertainties and fraudulent activity. Ripple’s focus on mitigating scams through public awareness campaigns contrasts with broader regulatory challenges, particularly as the SEC’s stance on crypto ETFs remains unresolved.

Source:

[1] [title1] [https://timestabloid.com/ripple-issues-fresh-critical-warning-to-xrp-holders/]

[2] [title2] [https://www.mitrade.com/insights/news/live-news/article-3-981654-20250724]

[3] [title3] [https://m.economictimes.com/news/international/us/xrp-sinks-6-percent-again-as-sec-delays-bitwise-crypto-etf-is-the-dip-a-red-flag-or-a-golden-buy-signal-heres-the-2025-xrp-price-prediction-you-need-to-see/articleshow/122859722.cms]

[4] [title4] [https://www.mitrade.com/insights/news/live-news/article-5-981104-20250723]

[7] [title7] [https://cryptorank.io/news/feed/a0abd-ada-holds-critical-0-75-support-after-open-interest-drops-9-48-rally-or-crash-ahead]