XRP may be heading for another significant correction as a familiar technical signal, the overbought daily Stochastic RSI, flashes once again. The last few times this indicator hit such levels in 2025, XRP saw sharp pullbacks ranging from 12% to 45%, with an average decline of around 25%.

As of June 28, the Stochastic RSI crossed above the 80 level on Ripple’s daily chart, entering the overbought zone, a common precursor to price reversals. This trend has held steady into early July, raising concerns of an impending downside. Historically, such RSI unwinding periods have triggered notable losses for XRP, as momentum cools and buyers exhaust.

Triangle Formations Point to Deeper Drops

Beyond momentum indicators, Ripple’s chart structure also suggests bearish momentum. A descending triangle pattern has formed on the daily timeframe following XRP’s rapid ascent earlier this year. If the pattern confirms with a breakdown, price targets could fall as low as $1.14, approximately 50% below current levels.

Adding further weight to the bearish thesis, crypto analyst Xanrox warns of a potential 70% correction. He highlights a multi-year ascending triangle dating back to 2017, which now shows signs of weakening. A key element in this analysis is the large Fair Value Gap (FVG) created during XRP’s explosive rally to $3.40 earlier this year. Historically, such gaps often get filled through sharp drawdowns. Xanrox’s downside projection? Around $0.60, a level not seen in months.

Bulls Still See Potential Upside

Despite bearish technicals, some analysts remain optimistic. Mikybull Crypto sees XRP consolidating in a symmetrical triangle, which could break to the upside, potentially pushing prices to $3.70 by September. Similarly, XForceGlobal projects long-term targets between $8 and $27, citing Fibonacci extension levels based on the recent rally.

Moreover, certain bullish signals such as a falling wedge breakout and whale accumulation suggest the possibility of a rebound. If XRP holds above key support and breaks out from current patterns, the bullish narrative could quickly regain momentum with near-term targets around $3.20.

Key Levels to Watch This Month

As July progresses, traders should closely monitor a few critical price zones:

• Overbought zone neutralisation: If the Stochastic RSI begins to move downward, it could mark the beginning of a correction.
• Support at $1.14: A breakdown below this level could validate the descending triangle pattern.
• Resistance near $3.20–$3.40: Any breakout above these levels might revive bullish sentiment.
• Major support at $0.60: The ultimate bearish target in case of a prolonged selloff.

While short-term technicals appear tilted toward a correction, the longer-term direction will depend heavily on volume dynamics, macro sentiment, and how XRP handles key support and resistance levels.

Tread Carefully as Volatility Looms

XRP traders face a pivotal moment. A repeated bearish signal from the Stochastic RSI, paired with triangle breakdown risks and historical FVG behaviour, suggests caution in the near term. However, with some analysts still targeting fresh highs, the coming weeks may bring heightened volatility and trading opportunities, both for bulls and bears.