XRP News Today: XRP Faces 50% Drop Risk as Overbought Signal Persists

XRP, a prominent cryptocurrency, has exhibited a pattern of significant price declines following overbought signals from the Stochastic RSI indicator. In 2025, XRP experienced an average drop of 25% after the Stochastic RSI entered the overbought zone. This signal has reappeared in July, suggesting a potential correction in the near future. The Stochastic RSI, which measures momentum by comparing an asset’s RSI to its recent range, crossed into the overbought zone above 80 on XRP’s daily chart on June 28 and has remained there since. Historical data shows that XRP tends to reverse sharply when these levels begin to neutralize, with declines ranging from 12% to 45% in 2025, averaging over 25%.

The current chart structure of XRP implies a higher probability of a downside move unless a decisive breakout invalidates this signal. A descending triangle formation, which emerged after XRP’s strong upward run, could push the price toward $1.14, representing a 50% drop from current levels. Analyst Xanrox has warned of an even deeper correction, citing a multi-year ascending triangle that has defined XRP’s price action since 2017. Xanrox’s analysis includes the formation of a large Fair Value Gap (FVG) during XRP’s vertical move earlier this year. Historically, such imbalances have been filled aggressively after steep drawdowns. Xanrox projects a decline toward the triangle’s lower trendline at around $0.60, a ~70% drawdown from current prices, following XRP’s recent rally to $3.40 in 2025.

Despite the bearish outlook, not all analysts share the same sentiment. Mikybull Crypto identifies a symmetrical triangle setup targeting $3.70 by September, while XForceGlobal projects a range of $8–$27 based on Fibonacci levels. Other analysts point to a falling wedge breakout and whale accumulation, with targets near $3.20. It is crucial to remember that this analysis does not constitute investment advice or recommendations. Every investment and trading move involves risk, and individuals should conduct their own research when making decisions.