XRP Price May Slide to $2.4: Analyst Cites Whale Selling, Bearish MVRV Cross

Key Insights:

• XRP price faces potential correction to $2.40 support.
• Analyst cites whale selling pressure and bearish MVRV cross as the reason
• Ripple submits regulatory response while indicators suggest deeper pullback ahead

The recent comments from market pundits indicate that the XRP price may decline to the $2.40 support level. Ali Martinez points to the 3-day chart’s TD Sequential sell signal as the reason for the pullback.

There is currently downward momentum due to bearish MVRV cross and whale selling pressure. During the correction phase, XRP is down 4.1% a day and has lost 14.6% over the last two weeks.

XRP Price Faces Correction Pressure to $2.4

Ali Martinez identified the TD Sequential sell signal on XRP’s 3-day chart at the local top. The technical indicator triggered an ongoing pullback from recent highs, creating bearish momentum.

The next key support level is estimated to be at $2.40, according to his projection.

Meanwhile, XRP price continues pulling back after sell signal confirmation on longer timeframes. The Tom DeMark Sequential flashed a warning right at peak levels.

Current price action shows a 4.1% daily decline with continued weakness.

Two-week performance shows 14.6% losses while seven-day charts show a 4.8% decline. Monthly data shows 28.8% gains despite the recent correction phase beginning.

An alternative analyst suggests the direct upside route remains possible through the yellow scenario.

Fibonacci levels of $3.84 and $4.33 would be the next upside targets in case of recovery. Closing below the weekend low would initiate alternative bearish scenarios.

The present technical setup shows conflicting signals with areas of resistance and support. The correction can further go on if selling pressure continues to build.

Whale action and MVRV cross add additional bearish considerations to take into account.

Short-term outlook relies on holding important support levels during the correction phase. A breakdown of the $2.40 support could initiate a deeper retracement towards lower levels.

Whale Selling Pressure Suggests XRP Price Correction Potential

Whale selling activity is exerting bearish pressure on XRP price action currently. Large holder distribution patterns are consistent with technical sell signals from indicators.

MVRV cross turns bearish, offering confluence to the correction thesis formation.

Market value to realized value ratios indicate unfavorable trends for the short-term. The measure that moved into negative territory earlier has triggered larger pullbacks.

Along with the whale action, several bearish factors meet on the charts.

XRP performance indicates mixed timeframe outcomes with recent weakness dominating. 28.8% monthly gains remain positive with the correction phase beginning recently.

Annual performance has very high returns of 487.8%. Price action shows correction or consolidation before potential continuation higher.

Technical convergence of TD Sequential, whale selling, and MVRV bearish cross. Several indicators point in the same direction, indicating caution in the short-term price direction.

The $2.40 support level becomes a key test to watch out for.

Ripple Responds to Senate Banking Committee

Stuart Alderoty submitted Ripple’s response to the Senate Banking Committee’s Request for Information.

The Chief Legal Officer thanked Chairman Scott for the opportunity to provide perspective. Ripple brings over a decade of regulatory experience working with global authorities.

The company offers a different perspective gained through hard-earned experience of SEC litigation.

Alderoty welcomes the opportunity to assist as Congress continues with consumer protection legislation. Ripple welcomes initiatives that will empower crypto innovation via transparent frameworks.

The response addresses digital asset market structure and regulatory jurisdiction concerns.

Draft bills aim to divide authority between the SEC and CFTC for regulating. Ripple asserts the current draft creates more confusion than clarification for the industry.

The company denounces the ancillary asset definition, risking regulatory overreach forever.

Ripple also mentioned that token trading on permissionless networks should be treated in a different way.

Regulatory submission during the phase of XRP price correction under technical pressures.

The timing is coincidental with industry-wide discussion of frameworks for classification. Ripple’s legal experience also offers useful feedback for congressional drafting of legislation.