- Analyst Ali Martinez highlights TD Sequential sell signal at $3.90.
- 720 million XRP dumped by whales in a single day.
- MVRV death cross signals overvaluation and potential extended correction.
XRP has entered a key correction phase after a strong upward move. A technical sell signal has emerged, pointing to a potential trend reversal.
Whale sell-offs and weakening on-chain support are compounding the bearish outlook. Key market metrics now suggest increased downside risk if current levels fail to hold.
TD Sequential Flashes Sell Signal as Price Breaks Below $3
Ali Martinez reported that the Tom DeMark (TD) Sequential indicator issued a sell signal on the 3-day chart. The alert appeared when XRP reached its recent local high of $3.90, signaling the start of a pullback.
Price action confirmed the warning, with XRP falling to approximately $2.97. Martinez noted that while the $3.00 level briefly offered support, it has started to erode.
Volume profile analysis shows that XRP now faces resistance near $3.20. Martinez highlighted a temporary buffer around $2.80 but stated that real structural support only emerges below $2.48. If XRP decisively loses the $2.80 zone, the price could slide toward $2.40, a key historical support level.
Whale Activity Highlights Mounting Sell Pressure
Whale behavior has intensified the selling pressure on XRP. Martinez reported that large holders offloaded over 720 million XRP in a 24-hour span. Santiment data confirms this trend, showing a significant drop in balances among wallets holding between 100 million and 1 billion XRP.
This on-chain activity coincides with the token’s recent decline, further aligning with bearish price momentum.
Additional Glassnode data show UTXO Realized Price Distribution (URPD), indicating that most of XRP’s realized volume is concentrated between $0.20 and $2.40.
Above the $2.80 range, historical support is minimal. This lack of volume-backed levels increases the probability of a sharp decline if current support fails.
MVRV Ratio Death Cross Signals Further Weakness
Another bearish indicator appeared on August 3, with the MVRV ratio crossing below its 200-day moving average. Martinez confirmed this death cross, noting that it typically signals overvaluation and precedes deeper corrections. The MVRV ratio tracks the relationship between market value and realized value, and its crossover suggests an increased risk of extended downside.
Martinez also shared the results of his July futures strategy. He closed 26 trades with a 108.63% gain for the month. Three trades involved XRP, with the final one opened on July 30 at $3.58, targeting $5.89. The position closed at breakeven near $2.66, underscoring recent market volatility and instability.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
