XRP Braces for Deeper Correction, Analyst Issues Stern Warning

Crypto market analyst Ali Martinez has issued a cautionary alert regarding XRP's recent price pullback, suggesting it could extend further. His comprehensive analysis points to a confluence of bearish indicators across price, on-chain, and behavioral metrics, signaling a challenging period ahead for the digital asset.

Technical Indicators Signal Downturn

Martinez's assessment hinges on a critical Tom DeMark Sequential sell signal observed on XRP's three-day chart, which he identified as the catalyst for the current pullback. This technical exhaustion model indicates that the asset may not have bottomed out, with $2.40 highlighted as the next significant support level to monitor. While the $3.00 area has intermittently offered some support, Martinez stressed that "real support" based on historical accumulation patterns lies below $2.48, making the zone between $2.80 and $2.48 a temporary buffer at best.

On-Chain Data and Market Health Concerns

Adding weight to the bearish case, on-chain data reveals substantial large-holder distribution. Martinez noted that "whales" have recently offloaded over 720 million XRP, significantly intensifying sell-side pressure. This large-scale distribution activity has been corroborated by multiple market trackers, indicating a concerted move by major holders. Furthermore, the Market Value to Realized Value (MVRV) ratio for XRP has flashed a "death cross," a technical event typically associated with downward momentum. Martinez emphasized that this MVRV signal is "another sign that a steeper correction could be underway," as it suggests short-term holders' cost basis is beginning to surpass the asset's market value.

Critical Price Levels Ahead

For now, Martinez's roadmap for XRP's trajectory is predicated on these three converging bearish signals. He argues that they collectively increase the probability of a "deeper corrective leg" towards the mid-to-high $2 range. The analyst maintains that XRP's path of least resistance remains downward unless the market can establish sustained closes above the high-volume node near $3.00-$3.20. Conversely, the critical area of "real demand" is firmly identified between $2.48 and $2.40. At the time of this report, XRP was trading around $2.93, with the market awaiting whether bulls can defend current levels or if a larger capitulation towards the $2.40 magnet is inevitable.