- A TD Sequential sell signal on XRP’s 3-day chart triggered the current correction, as the price struggles to reclaim short-term momentum.
- Whale wallets have offloaded over 710 million XRP, with $340 million exiting since July 9, reflecting sustained sell-side pressure across the board.
- On-chain data shows real support begins below $2.48, with the MVRV ratio flashing a death cross, signaling vulnerability in XRP’s current price level.
XRP may be on the verge of a deeper correction as several technical indicators and whale activity align in a bearish formation. After a sharp July rally, the token is now under pressure with weakening support and growing selling momentum.
Sell Signal on 3-Day Chart Marks the Start of Pullback
A Tom DeMark Sequential sell signal recently flashed on the 3-day XRP chart, coinciding with the token’s local top around $3.60. This marked the beginning of the ongoing correction as price action shifted downward from overbought levels.
After it signaled, XRP declined steadily and recently settled back above the $2.90 range. The Supertrend has also flipped bearish, suggesting the momentum in the shorter term favors sellers. If bulls cannot recover some key resistance areas, the bias could become even more bearish.
Whale Activity Points to Weakening Confidence
Whales have quietly exited the market, offloading large amounts of XRP in recent weeks. Over 640 million XRP, worth approximately $340 million, have been sold since July 9. In just the past 24 hours, more than 710 million XRP have changed hands.
A tweet confirms that the whale flow 90DMA is now “leaking red,” indicating sustained sell-side pressure from major holders. This trend suggests diminishing confidence among large wallets and could accelerate the correction if continued.
On-Chain Metrics Highlight Fragile Support Zones
On-chain data shows XRP’s support levels are weakening. While the $3.00 zone offered initial defense, it has failed to hold firmly. Analysts now point to $2.80 as a temporary buffer, but stronger support lies below at $2.48.
Adding to the bearish outlook, the MVRV ratio has flashed a death cross, typically seen as a warning of further downside. This crossover supports the idea that XRP may not yet have found a firm bottom and that lower price levels could be tested.
Trend Strength Declines Across Technical Indicators
The Directional Movement Index paints a similar picture of fading momentum. The +DI is at 22.29, still below the -DI at 17.95, while the ADX has started to decline from previous highs. This reflects a loss of trend strength and buying conviction.
If XRP fails to hold above the $2.90 level, a move lower back to $2.65 or below $2.40 could follow. However, any consolidation above $2.90 and a +DI crossover could indicate bullish reaccumulation. Until either of these scenarios happens, price action is still susceptible to downside movement.
