In the ever-volatile world of cryptocurrency, XRP, the digital token associated with Ripple Labs, might be facing a stormy weather front. As of August 6, 2025, crypto analyst Ali Martinez cautions that XRP’s recent price dip could deepen. This warning, shared through an X thread last Wednesday, highlights a series of bearish signals that suggest a potential extended downturn for the token.
Bearish Clouds Loom over XRP
Martinez’s analysis hinges on a variety of technical and behavioral indicators. Notably, a Tom DeMark Sequential sell signal materialized on XRP’s three-day chart, ominously right at the local price peak. According to Martinez, this signal has been a key driver of the ongoing decline. He further pinpointed $2.40 as a critical support level to watch, though the $3.00 mark has intermittently served as a support line, offering a temporary respite for the embattled token.
Martinez’s insights are not without precedent. Historical patterns underscore the $2.80 level as a transient buffer, but true support, he argues, lies below $2.48—a zone mapped meticulously through on-chain positioning data. His analysis is corroborated by independent reports, which also paint $2.80 as a mere cushion before heavier demand regions below $2.50 come into play. This perspective aligns with recent discussions on how XRP Price May Be ‘Controlled’ By This Market, adding another layer to the ongoing analysis.
Whale Activity Adds to the Pressure
Adding fuel to the bearish fire, whale activity has intensified the sell-side pressure. Martinez noted that over 720 million XRP have been offloaded by large holders, exacerbating the downward momentum. This surge in distribution, particularly a 710 million XRP sell-off within 24 hours reported on August 2, has been echoed by various market trackers, signaling a potential shift in market sentiment. This trend is part of a broader downturn affecting the crypto market, as detailed in Crypto Markets See Red as Solana, XRP, Dogecoin Extend Losses.
Moreover, the Market Value to Realized Value (MVRV) ratio has taken a negative turn, flashing what Martinez describes as a “death cross.” While typically associated with moving averages, this term here signifies a momentum break in MVRV curves, indicating that short-term holders’ cost basis may soon overshadow market value—a harbinger of possible further declines.
Navigating the Uncertain Waters
The TD Sequential model, designed by Tom DeMark to predict trend reversals, remains central to Martinez’s gloomy outlook. Since late July, when the model printed a three-day “sell” signal near the rally’s peak, Martinez has advocated for caution. He suggests that unless XRP can secure sustained closes above the $3.00–$3.20 range, the path of least resistance is downward, with on-chain profiles pointing to $2.48–$2.40 as zones of “real” demand.
In his roadmap, Martinez highlights three core elements: the exhaustion sell signal from the TD Sequential, the massive distribution by large holders, and the bearish MVRV crossover. Together, these factors increase the likelihood of a deeper correction toward the upper $2s, potentially even the mid-$2s if momentum continues to weaken.
The Road Ahead: Challenges and Questions
As XRP trades at $2.93, the crypto community is left pondering whether bulls can hold the line at the $2.80 buffer or if a more significant reset towards the $2.40 magnet is imminent. Martinez’s analysis, while thorough, leaves room for debate and scrutiny. The coming weeks will be crucial for XRP as it navigates these uncertain waters. Will the token find its footing, or are choppier seas ahead? The market watches and waits.
Source
This article is based on: XRP May Be Headed For A Deeper Correction, Warns Analyst
Further Reading
Deepen your understanding with these related articles:
- XRP, Ethereum Lead Crypto Market Rebound as Trump Reignites Trade War
- Gemini Reveals Bold $XRP Price Target: Here’s Why Best Wallet Token Could Benefit
- SBI Files for Bitcoin–XRP ETF in Japan, Pushing Dual Crypto Exposure Into Regulated Markets
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
