Here’s Why XRP May Be on the Verge of a Deeper Correction

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.

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Martinez Highlights Signs the Correction Could Continue

Market analyst Ali Martinez is one such analyst who believes the correction isn’t over yet. In a recent thread, he highlighted several technical and on-chain indicators that suggest XRP might still head lower. 

First, Martinez spotlighted the Tom DeMark (TD) Sequential indicator, which gave a sell signal on XRP’s 3-day chart right at the recent peak. Martinez shared this analysis on Aug. 3, and since then, XRP has steadily pulled back. The analyst sees this as a direct response to that signal.

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.

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.

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.

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. 

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. 

#XRP Analysis: 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.