XRP holders are being urged to exercise caution as a key technical indicator flashes a familiar warning. In a recent video shared on his official X handle, crypto strategist STEPH IS CRYPTO pointed out that XRP’s Stochastic Relative Strength Index (Stochastic RSI) has entered the overbought zone, a level that, in past cycles, has consistently preceded major pullbacks in price.
“XRP’s Stochastic RSI is in the overbought range. The last four times this happened, a pullback occurred in the XRP price. The question is, should we be worried or just ignore?” he asked, addressing his followers directly.
Historical Signals Trigger Concern
The Stochastic RSI is a momentum indicator used by traders to identify potential trend reversals. When it enters the overbought range, typically above 80, it suggests that an asset may be overextended and due for a correction.
According to STEPH IS CRYPTO, similar conditions in the past have led to sharp XRP retracements of -46%, -35%, and -52%, highlighting the significance of the current reading.
Urgent #XRP WARNING 🚨 pic.twitter.com/IXZG5cQrlw
— STEPH IS CRYPTO (@Steph_iscrypto) July 22, 2025
This isn’t the first time XRP has triggered such a warning. In each of the last four instances where the Stochastic RSI reached these levels, a sizable drop in price followed shortly after. While this does not guarantee a repeat performance, the historical pattern adds credibility to the analyst’s cautionary stance.
Current Market Outlook
As of report time, XRP is trading at $3.56360, showing a modest daily gain of 0.35%. However, the asset has struggled to decisively break above the key resistance at $3.66676, raising questions about its short-term momentum.
This technical hesitation comes amid a broader context of relative market calm. Bitcoin remains stable above $118,500, and Ethereum is holding its ground above $6,200. Yet, altcoins like XRP are beginning to show signs of slowing, with momentum indicators suggesting temporary exhaustion.
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Strategic Implications for Holders
While the presence of an overbought Stochastic RSI doesn’t guarantee an imminent reversal, STEPH IS CRYPTO’s analysis adds a valuable layer of insight for both traders and long-term investors.
For active market participants, the signal may warrant tighter risk management or reevaluation of entry points. Long-term holders, meanwhile, may use any potential pullback as a buying opportunity, especially if XRP’s fundamentals remain strong.
Despite the bullish structure forming on XRP’s chart, including what appears to be a potential Cup & Handle breakout, this latest warning serves as a reminder that no rally is without pause. Momentum-driven rallies are often followed by periods of consolidation or correction, and this may be one such moment.
In summary, XRP’s recent price action has been impressive, but the technical indicators tell a more cautious story. With the Stochastic RSI once again entering overbought territory, and history suggesting this could precede a pullback, STEPH IS CRYPTO is urging holders to stay alert and informed.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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