Ripple’s XRP Loses Momentum as MVRV Death Cross Signals Potential Major Correction

Jakarta, Pintu News – XRP (XRP) appears to be losing momentum after a huge rally in July. At the time of writing (4/8), its price stands at $2.99, down nearly 17% from its all-time high of $3.65 on July 18.

Although XRP has gained 6.2% in the last 24 hours, the crypto asset is still 7% lower than last week, signaling high short-term volatility.

This decline also coincides with on-chain signals that could potentially indicate further corrections in the near future.

XRP’s MVRV Ratio Turns Bearish

On August 4, crypto analyst Ali Martinez reported that the Market Value to Realized Value (MVRV) ratio for XRP had formed a death cross – a bearish signal that often signals a deeper correction.

Read also: Ripple Price Up 4% Today (August 4): What to Watch Out For?

The MVRV ratio compares the current market capitalization to the average value of the token when it last moved on the blockchain. When this ratio decreases, it means that many holders are starting to be in the loss zone, potentially triggering selling pressure.

If the short-term MVRV trend breaks below the long-term trend (death cross), it usually signals a momentum shift in the negative direction.

XRP Trading Volume Weakens, Derivatives Sentiment Mixed

XRP’s latest price movement was accompanied by a drop in trading volume. In the last 24 hours, volumes plummeted more than 23% to $4.83 billion, signaling interest in the spot market is waning.

According to Coinglass data, open interest (OI) actually rose 2% to $7.33 billion, while volume in the derivatives market fell 34% to $8.06 billion.

This combination of weaker volume but increased open interest indicates that traders prefer to hold positions rather than actively trade, reflecting a cautious attitude in the market.

Technical Indicators Show Cautionary Signals

XRP is currently just below its important short-term moving averages. The 10-day EMA at $3.02 and the 20-day EMA at $3.01 are both giving a sell signal.

Read also: 3 Crypto to Watch This Week, Potential to Surge Amidst a Bearish Market!

Meanwhile, the relative strength index (RSI) is at 51.29, still in the neutral zone so it has not given a clear direction. However, the Stochastic RSI is approaching level 14, which indicates XRP is starting to enter the oversold zone, so a short-term bounce is still possible.

For the long-term trend, the technical indicators still show underlying strength. The 50-day EMA is at $2.79 and the 200-day EMA is at $2.34, supporting the long-term uptrend.

As long as the price holds above $2.95, XRP is likely to move into consolidation before trying to break the $3.20 resistance again. However, if the price falls below $2.75, XRP could test the next support zone around $2.50.

With the MVRV death cross now formed, market participants will be closely monitoring whether buyers are able to hold the key support, or if XRP will experience a deeper correction in the next few days.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Crypto News. XRP cools from July highs – Is the MVRV death cross a sign of more pain ahead? Accessed on August 4, 2025