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Key Takeaways:
- XRP’s stochastic RSI is in an overbought zone, hinting at a possible short-term pullback.
- Similar past setups led to corrections, but broader context remains crucial.
- Analysts urge traders to balance technical signals with long-term fundamentals.
Crypto analyst StephisCrypto has spotlighted a potentially pivotal moment for XRP, sharing a weekly chart on Bitstamp that shows a notable technical sell signal. As XRP’s price climbs past $3.50 before a mild pullback, attention now turns to whether this rally marks the start of a correction — or just a pause.
Should we ignore this #XRP sell signal? 👇 pic.twitter.com/qBXPbBGWfo
— STEPH IS CRYPTO (@Steph_iscrypto) August 2, 2025
Technical Pattern Mirrors Past XRP Peaks
The weekly candlestick chart reveals a pattern that echoes previous market tops. Each red arrow placed by the analyst aligns with local peaks in XRP price history, all of which were followed by significant retracements. In each case, the stochastic RSI was also elevated — a trend that’s reappearing now.
This latest spike in XRP followed a period of consolidation and was marked by a strong green candle, adding weight to the argument that a local top may be forming.
Stochastic RSI Suggests Caution
The stochastic RSI currently shows readings of approximately 77.65 (blue) and 85.77 (orange), which are near the historical thresholds that preceded earlier pullbacks. While these indicators are not foolproof predictors of reversals, they often signal that momentum may be overextended.
StephisCrypto’s message seems clear: traders should tread carefully, especially those operating on short timeframes.
Also Read: XRP Price Correction Nears End as $2.78 Support Signals Bullish Reversal
Mixed Reactions From the XRP Community
Reactions from the crypto community were split. One user, X Finance Bull, noted that while momentum appears stretched, structural support levels matter more for long-term positioning. Another, MJS, emphasized patience, urging XRP holders to focus on long-term utility rather than short-term price noise.
While technical signals like the stochastic RSI suggest a potential XRP sell signal, they are just one piece of the puzzle. Investors should weigh macro conditions, liquidity, and XRP’s broader adoption prospects before acting. Diversified views in the community reflect the evolving nature of crypto trading — and the need for nuanced strategy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
