XRP crossed the important psychological threshold of $3 on Monday, rising nearly 5% to a high of $3.03. While Bitcoin and Ethereum recorded increases of about 0.50% and 2.50% respectively, XRP stood out with a nearly 5% increase and is now trading at $3.00.
This performance has made XRP one of the best-performing cryptocurrencies of the day. However, amid the excitement, cryptocurrency analyst Ali Martinez has issued a warning based on technical indicators.
Bearish "Death Cross" signal.
He points out that the MVRV ratio, a measure of the market value versus the actual value of a cryptocurrency, has created a "death cross" for XRP.
According to his analysis, this could be a signal of impending bearish pressure, suggesting that the current upward momentum may not be sustainable.
He added that on-chain data shows previous buying behavior indicates the $2.80 level could serve as a temporary buffer for XRP in case of a price drop. However, the actual support level is closer to $2.48, meaning the price could fall even deeper if market pressure increases.
XRP in the headlines: Overhyped?
Adding to his cautious stance, Martinez reacted to a recent article in USA Today calling XRP the "smartest cryptocurrency to buy at $500 right now."
He believes that such strong bullish sentiment from mainstream media can often be a typical contrarian indicator.
He called this article a "sign of the market top," a theory suggesting that when mainstream market excitement peaks, prices will often soon be corrected.
The long-term bullish outlook for XRP remains intact.
Cryptocurrency analyst Egrag has shared a new outlook for XRP, based on his 6-month chart. With less than five months left until the candle closes, he stated that a significant price movement could still occur. While some believe XRP may have peaked, Egrag mentioned he still expects a strong rally eventually.
He shared two feasible price targets: $4.89 based on the conventional chart and $48.90 based on the logarithmic scale. This is a significant gap, so he took the average, indicating the $27 level as a potential target.
