XRP shows a decline after significant growth in July, trading at $2.99. Analysts note possible signals of further correction.
MVRV Signal Indicates Bearish Sentiment
Crypto analyst Ali Martinez reported that the Market Value to Realized Value (MVRV) ratio for XRP formed a death cross, which is a bearish signal and may indicate a deeper correction ahead.
The MVRV ratio compares a token’s current market cap to its average value at the time it last moved on-chain.
> "The MVRV ratio flashed a death cross for XRP, suggesting a steeper correction could be underway!" — Ali (@ali_charts).
Declining Trading Volumes and Mixed Sentiment in Derivatives Markets
The recent price fluctuations for XRP have been accompanied by a decline in trading volume. Volume dropped more than 23% to $4.83 billion in the last 24 hours, indicating reduced interest in spot trading.
Coinglass data shows open interest increased by 2% to $7.33 billion while volume in derivatives markets fell by 34% to $8.06 billion.
Decreasing volumes and rising open interest may indicate that traders are holding onto their positions rather than actively trading, reflecting market caution.
Technical Indicators Suggest Caution
XRP is positioned just below important short-term moving averages, with the 10-day EMA at $3.02 and the 20-day EMA at $3.01 both flashing sell signals. The relative strength index (RSI) at 51.29 is in neutral territory and does not provide a clear directional indication.
A short-term bounce may be possible as the Stochastic RSI approaches 14, indicating the token is nearing an oversold zone.
Longer-term moving averages continue to support a general upward trend, showing strength at $2.79 and $2.34. Note: consolidation may be possible if XRP remains above $2.95.
Given the MVRV death cross signals, market participants will closely watch whether buyers can defend key support levels or if XRP is set for a deeper correction in the upcoming days.
