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Here’s Why XRP May Be on the Verge of a Deeper Correction
August 6, 2025
XRP Falling
Despite multiple market commentators suggesting XRP could be aiming for a bullish reversal, one analyst insists the correction could continue. For context, XRP surged to a new yearly high of $3.66 weeks back before the broader crypto market slipped into a correction. The drop, driven mainly by heavy selling on Korea’s largest exchange, Upbit, pushed XRP below the $3 price mark. Currently, it trades at around $2.96, down over 19% from the $3.66 peak. Now, while some traders believe the dip could mark the beginning of a recovery, others expect the price to fall even further before stabilizing.
XRP TD Sequential | Ali Martinez
Speaking further, Martinez called attention to accumulation zones using on-chain data. While XRP held above $3 for a while, he believes the $2.80 range now acts as only a temporary cushion. He noted this in another Aug. 3 post, saying that solid support doesn’t kick in until below $2.48. To him, this zone will be important if XRP continues to fall.
XRP UTXO | Ali Martinez
Adding to the pressure, Martinez highlighted a drop in whale holdings. On Aug. 2, he reported that large investors had dumped over 710 million XRP within just 24 hours. This massive selloff added fuel to the ongoing correction, indicating a loss of confidence among large investors.
XRP Whale Dumps | Santiment
Meanwhile, on Aug. 3, Martinez also pointed out another troubling signal, as the MVRV ratio recently flashed a death cross. This indicator often shows when an asset has moved into overvalued territory and could face deeper corrections. He believes this confirms his view that XRP might still have more room to fall.
XRP MVRV Ratio Death Cross | Ali Martinez
Levels XRP Needs to Reclaim to Flip Bullish
However, while Martinez remains cautious, other analysts see a possible recovery ahead if the price can reclaim some important levels. Dom, another well-followed trader, noted that XRP bounced from the zone he expected, calling it a healthy sign.
XRP 1D Chart | Dom
Nonetheless, he stressed that the bulls need to turn $3 back into strong support. According to Dom, XRP must also break and hold above $3.12 to cancel the current downtrend and shift back into a bullish setup. In addition, EGRAG Crypto looked at XRP’s short-term behavior and spotted some early signs of strength. He noted that XRP has managed to close several candles above the $3 mark, which he described as an important psychological level.
#XRPAnalysis: 4-Hour Time Frame Update
Let’s Zoom In into the #XRP chart to identify potential price movements and behavior on lower time frames (LTF)!
Zooming In: 5 Key Observations
1⃣ Bullish Closing: We’re seeing multiple candlesticks closing above $3.00, a…pic.twitter.com/INUfdkbBVO — EGRAG CRYPTO (@egragcrypto) August 5, 2025
Notably, although the wicks showed some selling pressure, the full candle bodies stayed above $3. Essentially, this suggests the bulls aren’t backing down yet. Still, EGRAG warned that XRP might dip briefly into the $2.96 to $2.93 range. He stressed that it is important to hold above $2.80, suggesting that dropping below that level would weaken the bullish case. According to EGRAG, if XRP can stay above this line and push past $3.185, it could aim for $3.25 next. The market analyst added that closing above $3.33 and $3.45 could open the door to a new all-time high.
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