Currently, while XRP's strong profitability showcases robust bullish momentum, it also implies that investors could decide to take profits at any moment.

Preface

XRP recently broke above the $3 level during a strong rebound, pushing over 94% of circulating supply into profit—a scenario seen only near the peaks of the 2017 and 2021 bull markets. This data shows the market is in a period of high optimism, but it also introduces potential profit-taking pressure.

Profit Ratios Above 90% Often Signal Market Tops

Glassnode data shows that around 93.92% of XRP’s supply is currently in profit. Historically, whenever the profit percentage surpasses 90%, the market is typically approaching a macro top.

Early 2018: XRP reached $3.3 before falling by approximately 95%.
April 2021: When the profit ratio again broke above 90%, XRP topped out near $1.95, then dropped more than 80%.

Although the current high level of unrealized profit demonstrates strong bullish momentum, it also means investors could choose to cash out at any moment.

On-Chain Indicators

Another key metric is NUPL (Net Unrealized Profit/Loss), which is currently in the “belief - denial” range. This resembles the market structure during 2017 and 2021, when XRP reached local highs in this phase and then entered a decline. If NUPL keeps rising toward the “greed” zone, historical trends suggest the market could come under heightened selling pressure.

Technical Patterns

From a technical standpoint, XRP is consolidating around $3.05 and forming a descending triangle—a bearish pattern that signals risk of a downside break. If the price falls below the $3.05 support, it could quickly drop to $2.39, marking about a 23.5% pullback. If, instead, XRP breaks out above the descending trendline, a trend reversal is possible. In this case, market participants may target the $6 level.

XRP spot trading is available at: https://www.gate.com/trade/XRP_USDT

Summary

XRP’s rapid ascent has delivered significant gains for investors, but both historical precedent and technical signals suggest the market may be entering a high-risk phase. In the near term, $3.05 is the critical support—holding above that level could extend the rally, while a breakdown warrants caution regarding a steeper correction. Long-term investors should monitor institutional capital flows. Further inflows may help offset potential selling pressure.

Author: Allen

Disclaimer

* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.

* This article may not be reproduced, transmitted or copied without referencing Gate. Contravention is an infringement of Copyright Act and may be subject to legal action.

Content

Preface

Profit Ratios Above 90% Often Signal Market Tops

On-Chain Indicators

Technical Patterns

Summary

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Preface

Profit Ratios Above 90% Often Signal Market Tops

On-Chain Indicators

Technical Patterns

Summary

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