Ripple has outperformed Bitcoin and most other altcoins over the past 5 months with an astonishing growth of 414%. Ripple's market capitalization also soared from $28 billion to $181 billion, making it the third-largest cryptocurrency.

The XRP price increase began after the election on November 5, paving the way for cryptocurrency-friendly policies under the Trump administration. Amid these achievements, the chain analysis platform Alphractal believes that XRP could continue its upward trend and has the potential to reach $10.

Emergence of More Bullish Signs for XRP

At the time of writing, XRP is trading at $3.06 after a slight 5% drop in 24 hours. According to Alphractal, this altcoin could experience a price surge similar to that of 2017 and exceed the $10 mark.

One of the indicators supporting this bullish outlook is the SMA multiplier. XRP is testing the resistance level at the two-year SMA multiplier, and if it surpasses this level, it could set the stage for a fivefold increase as seen in 2017.

Analysis also shows that over the past four years, XRP has recorded more green candles than red ones. This indicates a steady accumulation by traders and increasing global liquidity, which could support a long-term upward trend.

Wallet Profit Increase – Uptrend or Downtrend?

Following recent growth, the number of profitable XRP wallets has increased significantly. According to Alphractal, there are currently over 5,200 addresses holding XRP worth more than $1 million, while over 860 addresses hold tokens worth more than $10 million.

The number of whale wallet addresses is at an all-time high, with the value of holdings significantly soaring. Positive sentiment driven by increasing wallet profits has contributed to the price increase of XRP.

Additionally, short-term holders have been accumulating XRP at a rapid pace. Historically, short-term holders tend to drive the price up due to increased buying activity.

While trader behavior supports the bullish argument for XRP, other on-chain metrics suggest the market could become overheated, leading to a short-term correction.

The Net Unrealized Profit/Loss (NUPL) ratio has skyrocketed to 0.63, indicating that XRP is in a high-profit zone. This suggests that this altcoin is transitioning between the Belief Zone and the Denial Zone, with a rise above 0.7 predicted to signal a market peak.

The behavior of long-term holders also indicates they are taking profits by selling during the price surge. However, XRP continues to maintain an upward trend despite the sell-off by long-term holders, suggesting that demand remains strong to absorb selling pressure. This could support the next upward momentum.