Crypto analyst Ali Martinez has issued a stark warning for XRP, outlining a scenario where the token could face a sharp decline to the $0.80 level, representing a potential 56% crash from its current price. The analysis is based on a confluence of bearish on-chain indicators and technical vulnerabilities.
Key concerns center on a sharp decline in network activity. Martinez notes that daily active addresses on the XRP Ledger have cooled sharply, falling from roughly 46,000 to about 38,500 within a week. This drop points to fading user participation and organic demand, weakening the asset's resilience against selling pressure.
Compounding the issue is significant selling by large holders, or "whales." These influential investors have offloaded approximately 40 million XRP tokens recently. Such distribution from high-conviction capital alters supply dynamics rapidly and is often a leading indicator of trend exhaustion, especially in a market with muted retail activity.
From a technical standpoint, the $1.77 level is identified as a critical support zone. Martinez's analysis of the UTXO Realized Price Distribution (URPD) shows a notable amount of supply was last purchased around this price. If selling pressure continues and XRP loses this $1.77 support, the analyst warns it could open the door to a breakdown toward the next major demand zone near $0.79–$0.80.
At the time of the analysis, XRP was trading around $1.86-$1.87, down 8.6% over the past month despite minor 24-hour gains. The convergence of weak network fundamentals, whale distribution, and fragile technical support suggests the asset remains structurally vulnerable to a high-impact downside move.
