Today, XRP shows slight price increase, but analyst Ali highlights potential risks for investors.
Overview of the XRP Situation
Today, XRP increased by 4%, trading at around $2.91. Despite this rise, analyst Ali warns about a possible correction based on charts.
Ali's Chart Analysis
Ali presented a chart showing three key lines:
* Black line: XRP's price * Orange line: MVRV ratio (Market Value to Realized Value) * Red line: 200-day moving average of MVRV
The MVRV ratio signals a possible correction: "The MVRV ratio flashed a death cross for XRP, suggesting a steeper correction could be underway!"
Why This Might Signal Trouble for XRP
Ali notes that the MVRV death cross has historically preceded deeper pullbacks. Despite XRP's recent rise, the orange MVRV line has sharply dropped below its 200-day average, indicating that many holders are near or below their cost basis. This may lead anxious holders to sell into any short-term rally. XRP remains below the psychological $3 level after falling from its July high of $3.65. If selling pressure builds, a retest of the $2.60 or even $2.40 support levels could occur.
The analysis indicates that despite the current rise, XRP may face further difficulties. Investors should carefully monitor market movements.
