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.

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.

Versan Aljarrah, host of the Black Swan Capitalist, has insisted that XRP price would need to rise significantly to provide the necessary liquidity for the tokenization market.

His recent comments on this build on the sentiment that XRP will power the movement of assets across the growing tokenization market, projected to reach trillions in the coming years. Notably, the original XRPL architects built the platform for payments, with XRP’s major utility being its ability to serve as a bridge asset.

Despite Its Attractive Features, XRP Price Too Low to Power the Tokenization Market

Specifically, with its speed, low transaction cost, and impeccable settlement time, XRP has positioned itself as the perfect candidate for moving assets across borders. Ripple leveraged the token for its On-Demand Liquidity (now Ripple Payments), and it has served its purpose without hassle for years.

As a result, several community commentators have suggested that XRP could be the token the global financial scene needs to move money, especially across borders, as the traditional system features multiple inefficiencies. Notably, Teucrium CEO also recently suggested that Ripple could “hopefully” replace SWIFT.

However, Versan Aljarrah said in his latest commentary that it’s not merely about XRP powering cross-border payments to remove the current inefficiencies, like higher cost and slow speed. According to him, besides the prospect of a faster system, the parties involved would require sufficient liquidity.

It’s not just about faster cross-border payments, it’s about liquidity sourcing at scale. The tokenized financial system being built requires a high value bridge asset to function.

That demand can’t be met with a low $XRP price. For it to work, the price must rise significantly. pic.twitter.com/LV6It9hQn8

— Versan | Black Swan Capitalist (@VersanAljarrah) August 5, 2025

Aljarrah mentioned that the growing tokenization market, teased by business executives such as BlackRock’s Larry Fink and Robinhood CEO Vlad Tenev, would require a bridge asset with high value. He insisted that a low XRP price cannot meet that amount of demand.

XRP Price Would Need to Rise to Provide Sufficient Liquidity

For context, XRP, which currently trades for $2.91, has a market cap of $172.3 billion and a fully diluted valuation of $290 billion, considering its total supply of about 99 billion tokens. Aljarrah’s commentary suggests that an asset with a valuation of about $290 billion will not be enough to provide liquidity for asset movements. 

Notably, XRP and the XRPL are already making an appearance in discussions around the growing tokenization market. For instance, Bitwise recently suggested that buying XRP is a clean way to invest in tokenization. Also, Ripple CTO David Schwartz previously claimed the XRPL could become the go-to platform for RWA tokenization.

If this projection materializes and XRP grows to power the movement of tokenized real-world assets on-chain, a $290 billion valuation will not be enough. Specifically, a report from Ripple and the Boston Consulting Group (BCG) revealed that the real-world assets tokenization market stood at a $600 billion valuation in April 2025, and could hit $18.9 trillion in 2033.

Moreover, Standard Chartered predicted earlier this year that the market could hit $30 trillion by 2034. Notably, for XRP to provide sufficient liquidity for a $30 trillion market, its valuation would have to increase substantially.

Nonetheless, XRP is pre-mined, indicating that the system cannot create more tokens. As a result, the only avenue through which its valuation could rise is with a spike in price. This is one of the reasons behind price projections of a possible run to $100 and $1,000.

With the real estate sector recently seeing impressive volume growth, what could XRP price rise to if it powered cross-border property transactions?

Currently, XRP trades at $2.91, with a market value of $172.8 billion. It has jumped more than 38% this year despite a recent pullback and soared nearly 480% since November 2024. 

Could XRP Penetrate the Real Estate Sector?

However, even with those impressive gains, many analysts still argue that XRP remains undervalued. To make this argument, they typically cite its growing role as a global payment bridge. Interestingly, one area where XRP could make a major impact is the real estate industry, especially in handling cross-border property deals.

However, it remains uncertain how much a full penetration of this sector could impact XRP’s price. As a result, we recently asked ChatGPT for a hypothetical price assessment for XRP if it powered the global real estate market.

For context, last year, property transactions across both residential and commercial markets totaled $703 billion. This figure marked a 14% rise from 2023 and included activity from every major region. 

Specifically, the Americas led with $372 billion, while EMEA reached $199 billion and the Asia-Pacific posted $131 billion. Notably, momentum picked up toward the end of the year, especially in the fourth quarter, when deal volume climbed to $232 billion. 

Based on this data, ChatGPT built a model using the idea that XRP could act as both a bridge asset and a store of value. In this setup, all $703 billion in property deals would move through XRP. 

XRP Price if It Powers Cross-Border Property Transactions

Investors, real estate companies, and financial institutions would hold XRP, either briefly or for longer periods, to make transactions faster and more efficient. Notably, such a setup would demand deep liquidity and give XRP a more stable role in settlement systems.

Afterward, ChatGPT then used a capital multiplier to project XRP’s market cap under this scenario. For context, in crypto markets, new capital entering an asset often pushes its total value up far more than the raw amount invested, especially when demand rises and liquidity stays limited. 

Multipliers like this tend to range between 5x and 15x, but could surge to hundreds during strong bull markets, depending on liquidity. ChatGPT chose a 10x multiplier to model a highly optimistic outcome.

Using that approach, the chatbot multiplied the $703 billion in real estate transactions by ten, which gave a projected XRP market cap of $7.03 trillion. With XRP’s current circulating supply of 59.3 billion tokens, this results in a hypothetical XRP price of $118.55. 

For a more conservative scenario, ChatGPT also ran the same model with a 5x multiplier. Notably, this alternative calculation produced a market cap of $3.515 trillion and a token price of $59.27. Interestingly, even in this more modest scenario, XRP’s price would jump more than 20 times its current value.

ChatGPT stressed that the prospect of XRP fully taking over global property transactions remains unlikely anytime soon. However, if XRP grabs even 5% to 10% of this market, its price could easily climb into the $6 to $12 range.