XRP May Be Headed For A Deeper Correction, Warns A | Crypto News
Crypto market analyst Ali Martinez is warning that XRP’s latest pullback might lengthen, citing a cluster of bearish alerts across price, on-chain, and behavioral metrics.
Why XRP Could Face A Deeper Correction
In an X thread posted early Wednesday, Martinez opened with: “XRP may be headed for a deeper correction. Here’s why!” and pointed to a Tom DeMark Sequential promote signal on the three-day chart “right at the local top,” which he said “trigger[ed] the ongoing pullback.” His remarks comply with a weekend notice flagging $2.40 as the “next key support level to watch” after that three-day TD promote signal.
Martinez expanded on market construction, arguing that while the $3.00 space has intermittently acted as help, historic accumulation patterns make $2.80 a short-term buffer, with “real support” starting below $2.48—a zone he has mapped utilizing on-chain positioning.
He reiterated on Aug. 3 that “past accumulation behavior points to $2.80 as a temporary buffer for XRP, but real support begins below $2.48,” including that the most consequential degree on his dashboard stays $2.40. Independent coverage of his analysis echoed those thresholds, framing $2.80 as a mild cushion with heavier demand pockets sub-$2.50.
Flow data has added to the bearish case in the close to time period. Martinez said whales have offloaded over 720 million XRP, intensifying sell-side stress in latest classes; earlier, on Aug. 2, he specified that “whales have sold over 710 million $XRP in the past 24 hours!” That spike in large-holder distribution has been picked up by a number of market trackers and recaps over the past few days.
He also flagged the Market Value to Realized Value (MVRV) signal turning sharply destructive. “The MVRV ratio just flashed a death cross,” Martinez wrote, calling it “another sign that a steeper correction could be underway.” The post underscores the crossover as a warning of rising draw back risk if short-term holders’ value foundation begins to overhang market worth.
While “death cross” language is more generally related with moving-average pairs, Martinez makes use of the time period right here to describe a momentum break in MVRV curves.
The TD Sequential—a Tom DeMark-designed exhaustion model often used to anticipate pattern reversals—has been central to Martinez’s view since late July, when he tracked a three-day “sell” print close to the top of the latest rally leg. He has since framed the trail of least resistance as decrease unless the market can set up sustained closes back above the high-volume node close to $3.00–$3.20, while on-chain profiles continue to privilege $2.48–$2.40 as the realm of “real” demand. As he put it on Aug. 3: “The next key support level to watch is $2.40!”
For now, Martinez’s roadmap rests on three pillars: an exhaustion promote on the 3-day TD Sequential, large-holder distribution in the tons of of thousands and thousands of XRP, and a bearish MVRV crossover, all of which he argues raise the probability of a deeper corrective leg toward the high-$2s and, if momentum deteriorates, the mid-$2s. Whether bulls can defend the shallower buffers close to $2.80 might decide if XRP’s decline stays a garden-variety pullback or morphs into a bigger reset toward his $2.40 magnet.
At press time, XRP traded at $2.93.
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