XRP Falls 5% in a Week Amid Bearish Signals and Whale Activity

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XRP, one of the leading cryptocurrencies by market cap, has dropped 5% over the past week, driven by a confluence of technical and on-chain factors. While broader market sentiment remains cautious, chart analysts and blockchain data suggest that XRP may face deeper short-term downside.

Crypto analyst Ali Martinez points to a series of bearish indicators, with the Tom DeMark Sequential flashing a sell signal on XRP’s 3-day chart. This indicator often precedes trend reversals, and in this case, it marked the beginning of the current pullback.

Martinez noted that while $3 previously offered brief support, the next critical floor sits near $2.40. “On-chain metrics indicate that real demand begins below $2.48, making the $2.80 zone a weak buffer,” he explained in a recent update.

Adding to the negative outlook, whale investors have been offloading large XRP holdings. Over 720 million XRP tokens were moved in recent days, contributing to downward pressure. On August 5, blockchain monitoring service Whale Alert reported a 20 million XRP transfer (roughly $60.6 million) from South Korean exchange Upbit to an unidentified wallet, typically a red flag for large-scale liquidation.

Another key technical concern is the MVRV ratio, which has now triggered a death cross, a historically bearish signal for momentum and valuation relative to cost basis.

Despite the pullback, Martinez’s trading record remains notable. In July, he executed 26 trades and booked a 108.6% cumulative profit. His XRP trades alone include an entry at $2.33 on July 7, with an 11.1% gain on exit, followed by smaller trades on July 24 and July 30.

Meanwhile, XRP derivatives markets are heating up. According to Coinglass, options volume surged 94.8%, and open interest jumped 82.8% in a single day. However, this volatility has come at a cost: the past 24 hours saw $15.3 million in XRP positions liquidated, with $13.3 million coming from long trades.

On the institutional front, Ripple continues to push into Asian markets, announcing a new partnership with South Korean crypto custodian BDACS. The deal enables Ripple Custody to provide secure storage infrastructure for XRP and RLUSD, integrated with top local exchanges including Upbit, Coinone, and Korbit.

The expansion comes amid tightening global regulations and growing institutional demand for regulatory-compliant crypto solutions, a space where Ripple seeks to gain further ground.