XRP could be in for a steeper correction, according to elite analyst Ali Martinez, who highlighted multiple bearish indicators across technical charts and on-chain data.
XRP peaked above $3.60, but has been sliding in early August. At press time, XRP is trading around $2.90, down from its late-July highs. Martinez shared several key signals that indicate the pullback might not be over.
What you'll learn 👉
TD Sequential Flashes Sell Signal
The first warning sign came from the Tom DeMark (TD) Sequential indicator on the 3-day chart. This tool is widely used by traders to identify potential trend exhaustion and reversal points.
Martinez noted that the TD Sequential flashed a sell signal right at the local top, triggering the current pullback. Historically, this indicator has preceded short-term corrections when prices have been overextended.
On-Chain Data Points to Weak Support
Even though XRP initially held the $3.00 level as support, Martinez pointed to on-chain accumulation data that indicate the real buffer is lower.
- Temporary support: $2.80, where some past buying activity occurred.
- Stronger support: Below $2.48, where the largest historical accumulation clusters exist.
If XRP fails to hold the $2.80 level, traders should watch for a potential drop toward the $2.40–$2.48 zone.
Whales Are Selling
Adding to the bearish pressure, XRP whales have sold over 720 million tokens in the last 24 hours, according to Martinez.
Large holders, often referred to as “whales,” can influence price trends because their movements represent significant liquidity. When they start offloading tokens, it often signals a lack of short-term confidence or an effort to take profits after a strong rally.
MVRV Ratio Flashes a Death Cross
Perhaps the most concerning signal is from the MVRV (Market Value to Realized Value) ratio, a popular on-chain metric that compares the current market price of XRP to the average price of coins last moved on-chain.
When the short-term MVRV crosses below the long-term MVRV, known as a death cross, it typically indicates:
- Holders are sitting on fewer unrealized profits.
- Selling pressure may increase as market participants exit positions to secure gains.
Martinez said this death cross strengthens the case for a deeper correction, as similar patterns in the past have preceded multi-week pullbacks.
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What Traders Should Watch Next
With XRP trading below $3.00, the key levels to watch are:
- Immediate support: $2.80
- Major support zone: $2.40–$2.48
- Resistance for recovery: $3.00
If whales continue to sell and the MVRV signal plays out, XRP could revisit its lower support levels before any new bullish attempt. F
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