XRP News Today: XRP Faces 50% Drop Risk as Stochastic RSI Signals Overbought

XRP, a prominent cryptocurrency, has historically experienced significant price declines following overbought signals from the Stochastic RSI indicator. In 2025, XRP averaged a 25% drop in price during periods when the Stochastic RSI unwound from overbought levels. This pattern is currently repeating, with the Stochastic RSI crossing into the overbought zone above 80 on June 28 and remaining there since. Previous instances of this signal have resulted in price corrections ranging from 12% to 45%, with an average decline of over 25%.

The current chart structure of XRP suggests a higher probability of a downward correction unless a decisive breakout invalidates this signal. The cryptocurrency's price action has formed a descending triangle, which, if it breaks down, could push the price toward $1.14. This represents a 50% decline from current price 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. He predicts a decline toward the triangle’s lower trendline at around $0.60, a ~70% drawdown from current prices. This projection is based on the formation of a large Fair Value Gap (FVG) during XRP’s vertical move earlier this year, which historically has been filled aggressively after steep drawdowns.

However, not all analysts share this bearish outlook. Mikybull Crypto sees a symmetrical triangle setup targeting $3.70 by September, while XForceGlobal projects a price range of $8–27 based on Fibonacci levels. Other analysts cite whale accumulation as a bullish indicator, with targets near $3.20. These bullish projections suggest that XRP could experience significant upward momentum in the coming months, despite the current bearish signals.

In summary, while the current Stochastic RSI signal and descending triangle formation suggest a potential downside risk for XRP, with some analysts predicting declines of up to 70%, other analysts remain optimistic about the cryptocurrency's future. The varying opinions highlight the volatility and uncertainty inherent in the cryptocurrency market, and investors are advised to conduct their own research before making any investment decisions.