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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.
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.