- Analyst Ali Martinez warns that a deeper XRP price correction is likely on the way.
- A “sell signal” on the 3-day chart is pointing to more downside risk for the XRP price.
- Adding to correction fears, whales have sold over 720 million XRP in recent weeks.
The crypto market is unusually quiet today. Most altcoins are barely moving, with many showing zero to very small gains between 1% to 2%. However, XRP has dropped by 2% in the last 24 hours and is now trading below the $3 mark.
Analyst: Deeper XRP Correction Is Coming
Don’t expect a quick bounce, warns popular crypto analyst Ali Martinez. He believes XRP could be heading for a much deeper correction based on several key indicators.
According to Martinez, a technical indicator known as the Tom DeMark Sequential has flashed a “sell signal” on the 3-day chart, right at the recent top. This has already triggered the current pullback in price.
Although the $3 level has acted as support, Martinez says XRP could fall further. On-chain data shows $2.80 may act as a temporary cushion, but true support lies below $2.48. Whales have already sold more than 720 million XRP recently, a move that increases selling pressure in the market.
Related: XRP (XRP) Price Prediction for August 7
On top of that, another bearish sign has appeared: the MVRV ratio has flashed a “death cross,” which often points to a steeper drop in price.
But Not All News Is Bearish for XRP
Despite these warnings, there are still positive developments that could support XRP in the longer term. One of the most encouraging signs is that some companies are starting to hold XRP on their balance sheets.
Attorney Bill Morgan recently observed that U.S.-based company Flora Growth revealed in its Form 10-Q filing that it owns XRP, along with Solana and Ethereum. According to the company’s website, the move is meant to strengthen its financial position.
Ripple vs SEC Case Nears a Key Date
Another important event for XRP is the ongoing Ripple vs SEC case. An important date is coming up on August 15. Ripple has already stated it will dismiss its appeal, and both Ripple and the SEC had agreed to a conditional settlement. However, that agreement wasn’t fully satisfied, so the appeals are still active for now.
Related: Ripple CLO to Congress: Don’t Classify All Crypto as Securities Indefinitely
That said, Bill Morgan believes that both sides are still likely to dismiss their appeals before the August 15 update to the court. While August 15 is not a hard deadline to dismiss the appeals, it is a key date for progress in the case.
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