4 XRP Warning Signs Flash: Is Ripple’s Price About to Tumble?

XRP is down by over 8% weekly but the landscape could soon worsen.

TL;DR

  • Ripple’s native token fared relatively well during one phase of the ongoing market-wide correction, but has slipped further below the crucial resistance at $3.
  • Although the asset has lost more than 20% of its value since its all-time high registered in mid-July already, there could be more pain on the horizon. Here are four signs supporting this narrative.

Technical Indicators

It was just a few weeks ago when XRP rode a massive wave that drove it from a range-still position of around $2.2 to an all-time high of $3.65. Following this spectacular run, the asset expectedly calmed and retraced toward $3.3. At this point, analysts emerged to warn about the significance of the $3 support, which has to endure so that XRP can remain in a bullish state.

Although this was indeed the case for a long period during the recent correction, that support line finally cracked in the past several hours, and the third-largest cryptocurrency now sits well below it. Although it still hasn’t closed beneath it on the daily, it could dump to the next two support lines at $2.8 and $2.5 if it does, as previously reported.

The second worrying sign for XRP’s price comes from the TD Sequential metric. Ali Martinez, a popular crypto analyst with roughly 140,000 followers on X, warned that the indicator had flashed a sell signal on the 4-hour chart at the local top.

Thirdly, Martinez highlighted the MVRV ratio, which just notched a “death cross, another sign that a steeper correction could be underway.”

XRP MVRV. Source: Ali Martinez
XRP MVRV. Source: Ali Martinez

Whales Dumping

Ahead of and during the aforementioned rally to a new all-time high, large market participants, known as whales, were accumulating en masse. Within a few weeks, they spent billions to acquire more tokens. In fact, they were buying even when the asset’s price dipped.

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However, whales have switched their strategy and disposed of more than 700 million XRP tokens in the span of just a day. To put things into a USD perspective, this stash is worth over $2.1 billion at current prices. Such massive sell-offs increase the immediate selling pressure and serve as examples for smaller investors who can follow suit.

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About the author

Jordan Lyanchev
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Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain.