XRP, from Ripple, recorded an increase of nearly 30% since June 22, driven by increased interest in the crypto market. However, on-chain data indicates signs of possible rally exhaustion.
After hitting the cycle low of $1.90 on June 22, the cryptocurrency began an upward trajectory and is currently trading at $2.58. During this period, the Dormancy Flow indicator began to rise, reaching 1.19 billion units, according to data from Glassnode.
XRP Dormancy Flow. Source: Glassnode
The Dormancy Flow measures whether long-term investors remain inactive or are moving their coins. When the indicator rises, as it is now, it suggests that previously inactive coins are being transferred or sold. This behavior is common in advanced bullish phases when experienced investors seek to take profits. This pattern can indicate a risk of reversal in the coming days.
Profit zone triggers selling pressure
The Net Unrealized Profit/Loss (NUPL) indicator of XRP is currently at 0.56, also in an upward trend. The metric reflects unrealized profits based on the difference between the current price and the acquisition cost of the coins.
XRP Net Unrealized Profit/Loss. Source: Glassnode
With the NUPL in the zone classified as 'belief', investors accumulate significant gains and may feel motivated to take profits, which tends to increase selling pressure.
RSI suggests overbought market
The Relative Strength Index (RSI) of XRP, currently at 72.95, reinforces the warning of a possible correction. The RSI measures whether an asset is overbought or oversold; values above 70 indicate excessive buying and risk of decline.
XRP Price Analysis. Source: TradingView
With the indicator in this range, the crypto may face a slowdown in bullish momentum, leading traders to consider taking profits.
What to expect for the future of XRP?
If demand loses strength, the price of XRP may retreat to $2.45. However, if buying pressure persists, the altcoin could reach the level of $2.65.
Technical analysis suggests that, while XRP has shown consistent recovery, on-chain and technical momentum signals indicate a possible short-term correction.
The article XRP Forecast: with a 30% accumulation, will there be a correction soon? was first seen on BeInCrypto Brazil.
