The surge in XRP prices has allowed most holders to profit, but not everyone is celebrating while remaining cautious. Cryptocurrency analyst JD had previously predicted XRP would rebound from $0.50, but he has issued a stern warning to investors. He acknowledges that the current rally has brought life-changing profits for some, but warns that the market may soon face a significant correction.
Is XRP about to drop significantly?
JD commented in his latest post on X: 'As of now... some people might even retire from $XRP... but it won't last long... the peak will come before the RUG PULL crash.' His remarks emphasize a familiar theme in his market commentary: once profit-taking intensifies, strong rebounds often give way to significant declines.
As JD issues a warning, the sentiment in the XRP community is at one of its most optimistic periods in years. Previously, he successfully predicted XRP breaking through the $0.50 mark, so his latest comments are closely watched by investors who have previously followed his technical insights during past market cycles.
On-chain data supports people's concerns
The background of JD's post is a report from Cointelegraph citing Glassnode data, which shows that as of the time of Cointelegraph's reporting, nearly 94% of XRP's circulating supply is currently in profit as prices surge above $3.
In the past, extreme profitability values often coincided with market peaks. XRP recorded similar data during its peaks in 2018 and 2021, but both times followed by significant pullbacks.
This data reinforces JD's viewpoint that the market may soon enter a cooling phase. When almost all holders are in profit, the motivation to lock in gains becomes incredibly strong, often triggering large-scale selling pressure.
The current duality
JD's statement is particularly notable for its balance between optimism and warning. He acknowledges that 'some people might even retire from XRP,' reflecting the extraordinary financial gains some investors have realized at current levels. However, he quickly shifts to warn of a 'RUG PULL crash,' which undermines this optimism while clearly reminding people of the volatility in the cryptocurrency market.
It is precisely this duality—celebration on one side and caution on the other—that resonates strongly with the broader market dialogue. Investors realize that XRP's next significant move could either solidify its newly acquired momentum or erase much of its recent gains.
Prepare for what comes next
For XRP holders, the key points analyzed by JD are evident: the current market environment, while delivering unprecedented profits, also comes with higher risks. With institutional investors increasingly interested in the cryptocurrency market and XRP expected to rise further in the short term, market volatility is anticipated to intensify.
Regardless of whether XRP can maintain its upward momentum or faces a significant correction as JD predicts, one undeniable fact remains — the token has entered a decisive phase in its market history. Investors who have experienced XRP's rise from $0.50 to over $3 now face a tough decision: to take profits or to continue holding amid potential turbulence?
