XRP Investors Face Critical Juncture as Profits Soar

Recent data reveals 【94%】 of XRP holders currently sit on unrealized gains, raising concerns among analysts about a potential market peak. The digital asset's 500% surge since late 2024 has pushed its price to $3.11, creating what some experts warn could be an overheated market condition.

Historical Patterns Suggest Caution

Glassnode metrics show striking similarities between current conditions and previous market tops. In both January 2018 and April 2021, XRP saw comparable profitability levels before dramatic corrections:

• 2018: 90%+ profitability preceded 95% crash

• 2021: Similar readings came before 85% downturn

The Net Unrealized Profit/Loss (NUPL) indicator now sits in the "belief-denial" zone — historically a precursor to price reversals.

Technical Setup Points to Potential Decline

Chart analysts identify a concerning pattern developing on XRP's four-hour timeframe. The cryptocurrency has formed what appears to be a descending triangle — typically a bearish formation — with:

• Lower highs near $3.20

• Flat support at $3.05

A breakdown below this support could trigger a 【23.5%】 drop toward $2.39 by September, according to technical projections.

Market Sentiment at Crossroads

——The current situation presents textbook profit-taking conditions—— notes a blockchain analytics firm. With most investors holding profitable positions, the risk of mass selling increases substantially. However, some market participants remain optimistic about XRP's institutional adoption potential and broader altcoin market momentum.

Critical Levels to Watch

Traders should monitor two key price zones:

1. Downside: $3.05 support holding or breaking

2. Upside: Descending trendline near $3.30

A decisive move in either direction could determine XRP's medium-term trajectory, with technical targets ranging from $2.39 to $6.00 depending on breakout direction.

As of press time, XRP continues consolidating near the $3.10 level, with market participants weighing the competing narratives of profit-taking pressure against potential institutional demand growth.