Key Notes
- XRP dropped below $3, wiping over $5 billion in market cap.
- Analyst sees key support forming near $2.40.
- Whale selloff and MVRV death cross raised red flags.
XRP XRP $2.98 24h volatility: 0.4% Market cap: $176.58 B Vol. 24h: $4.52 B price has recently dropped below its key psychological support of $3, falling to $2.96 at press time. The cryptocurrency has seen a $5 billion loss in market capitalization within 24 hours, with a 2.5% price drop, driven largely by high-volume selloffs.
However, analysts suggest that XRP might face further downside pressure. In a recent X thread, popular analyst Ali Martinez noted that the Tom DeMark (TD) Sequential indicator on the 3-day chart flashed a sell signal precisely at XRP’s recent local high of $3.60.
The Tom DeMark Sequential flashed a sell signal on the 3-day chart right at the local top, triggering the ongoing pullback. https://t.co/vn8WMlighX
— Ali (@ali_charts) August 5, 2025
Martinez highlighted that while $3 has been a historic support zone, the real downside price floor may not appear until $2.48–$2.40. He noted that $2.80 may only serve as a weak interim floor.
Meanwhile, on-chain data shows over 720 million XRP were offloaded by whale wallets in the past day. Such a massive sell-off indicates that large holders may be starting to reposition their portfolios amid growing market uncertainty.
Martinez also noted the recent formation of a death cross in the Market Value to Realized Value (MVRV) ratio. This generally leads to extended downward trends in crypto markets.
Meanwhile, the MVRV ratio just flashed a death cross, another sign that a steeper correction could be underway for $XRP . https://t.co/Jl1aV6ny5Q
— Ali (@ali_charts) August 5, 2025
XRP Price in Bear Control?
Despite the mounting signs of weakness, sentiment on CoinMarketCap remains surprisingly bullish, with 88% of users forecasting an eventual rebound.
On the daily XRP price chart , the RSI is currently hovering near the neutral zone but is trending downward. A break below 45 would confirm bearish control, with key support levels at $2.80 and $2.40.
XRP price chart with RSI and Bollinger Bands | Source: Trading View
XRP is trading near the lower Bollinger Band, suggesting heightened volatility. If the price closes below the lower band around $2.74, the drop may accelerate. The middle band (20-day SMA) at $3.16 now acts as key resistance.
Meanwhile, the MACD line has crossed below the signal line with increasing bearish histogram bars. This confirms downward momentum with no immediate reversal in sight.
XRP price chart with MACD | Source: Trading View
Unless XRP price recovers the $3 mark swiftly, bears could retain control in the near term.
next
