XRP MVRV Ratio Flashes Death Cross. Here's the Impact On Price

Renowned crypto analyst Ali Martinez has issued a stark warning for XRP investors. According to the analyst, XRP’s Market Value to Realized Value (MVRV) ratio had just flashed a death cross, a bearish crossover where the short-term MVRV dips below its long-term counterpart

This pattern often suggests that a steeper correction may be on the horizon. Ali stated, “The MVRV ratio flashed a death cross for $XRP, suggesting a steeper correction could be underway!”

Price Action Reflects Mounting Pressure

Following its mid-July peak of $3.65, XRP has fallen sharply, now trading around $2.99 as of report time. This 17% pullback aligns closely with the death cross event, underscoring increasing selling pressure. The MVRV death cross indicates that more XRP holders are now in unrealized loss territory, raising the likelihood of panic selling, especially if support levels begin to fail.

On-Chain and Market Indicators Support Bearish Outlook

On-chain data reveals weakening sentiment across the board. XRP’s daily spot trading volume has dropped more than 23% to approximately $4.83 billion, while derivatives volume has declined by over 34%

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Meanwhile, open interest in XRP derivatives has seen a slight increase, hinting at cautious repositioning rather than new capital inflows. These metrics suggest that traders are stepping back as uncertainty grows.

Technical Analysis: Key Levels to Watch

XRP is currently struggling to break through its short-term resistance at the 10-day and 20-day exponential moving averages (EMAs), sitting at $3.02 and $3.01, respectively. These levels, once supportive, have now flipped into firm resistance zones.

Momentum indicators reflect indecision. The Relative Strength Index (RSI) is neutral at 51.3, while the Stochastic RSI is near oversold levels, suggesting limited upside potential unless strong buying emerges. Immediate support sits at $2.95

A clean break below this level could trigger a sharper decline toward $2.75 or even $2.50. Conversely, a daily close above $3.20 could invalidate the bearish setup and revive bullish momentum.

Macro Structure Still Intact

Despite the concerning short-term signals, XRP’s broader market structure has not been fully compromised. The 50-day and 200-day EMAs—currently around $2.79 and $2.34—remain upward-sloping, indicating that long-term momentum is still in play. This suggests that while the market is cooling, a major breakdown has yet to materialize.

Caution Amid Uncertainty

Ali’s warning via the MVRV death cross is a critical signal that XRP’s recent rally may be stalling. With weakening trading volumes, rising unrealized losses, and key support levels under pressure, traders should brace for continued volatility

Unless bulls step in decisively to reclaim $3.20, the path of least resistance remains to the downside. For now, XRP holders would be wise to monitor both technical levels and on-chain trends closely as the asset navigates this fragile period.

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