According to Cointelegraph, XRP has experienced an average decline of 25% in 2025 following overbought signals from the Stochastic RSI. This trend is currently unfolding in July, suggesting a possible correction in the near future. Historically, XRP's price drops have ranged from 12% to 45% this year, with the Stochastic RSI indicating momentum by comparing the asset's RSI to its recent range. On June 28, XRP's daily chart showed the Stochastic RSI entering the overbought zone above 80, where it has remained. Typically, XRP tends to reverse sharply when these levels begin to neutralize, with declines averaging over 25% in 2025. The current chart structure suggests a higher probability of a downside unless a decisive breakout occurs to invalidate this signal.
A descending triangle formation following XRP's recent upward trend poses a risk of strengthening the bearish outlook, with projections indicating a potential drop to around $1.14, representing a 50% decrease from current price levels. Analyst Xanrox warns of a more significant correction, pointing to a multi-year ascending triangle that has influenced XRP's price action since 2017. A crucial aspect of his analysis is the formation of a large Fair Value Gap (FVG) during XRP's vertical movement earlier this year. Historically, such imbalances have been aggressively filled after steep drawdowns. Xanrox anticipates a similar outcome following XRP's recent rally to $3.40 in 2025, targeting a decline toward the triangle's lower trendline at approximately $0.60, which would be a 70% drawdown from current prices.
Despite these bearish predictions, some analysts maintain a more optimistic outlook. Mikybull Crypto identifies a symmetrical triangle setup that could target $3.70 by September, while XForceGlobal projects a price range of $8 to $27 based on Fibonacci levels. Other analysts highlight a falling wedge breakout and whale accumulation, with targets near $3.20. It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers are encouraged to conduct their own research before making any decisions.