The price of XRP led to a significant rise in recent weeks. According to on-chain data, 94% of its investors are profitable, a noteworthy number within the crypto ecosystem.
This analysis examines the historical patterns of XRP, the most relevant technical indicators, and the possible trajectories it may follow in the short term. The goal is to provide a clear and grounded view to understand whether the current enthusiasm represents an opportunity or a latent risk.
Historical signals and on-chain metrics of XRP: is a price drop approaching?
Although XRP's metrics seem encouraging, experience shows that when a large majority are in the green, the market tends to enter a correction phase. The pressure to realize profits increases, which can lead to massive sell-offs and affect the currency's value.
XRP market cycles have shown repetitive patterns. In 2017 and 2021, when over 90% of investors were profitable, a significant drop soon followed.
In 2018, the cryptocurrency fell from a high near $3.30 to plummet over 95%. A similar event occurred in 2021, when after approaching $2, it experienced a prolonged retracement.
Percentage of XRP supply in profit. Source: Glassnode
A key indicator is the Net Unrealized Profit/Loss (NUPL), which is currently in the belief-denial phase. This stage reflects excessive confidence in the continuation of the uptrend, which generally increases the risk of a sharp reversal.
The current graphic analysis of XRP reveals a descending triangle, a pattern characterized by increasingly lower highs and strong support at specific levels. Historically, this type of figure tends to resolve with a downward breakout.
If the price falls below $3.05, it could seek levels close to $2.40, which would imply a correction of over 20%.
However, not everything points to pessimism. A break above the descending trendline would pave the way for a new momentum, with analysts even projecting levels close to $6.33 in the medium term.
XRP is, therefore, at a decisive point: between selling pressure derived from massive profits and the possibility of a new wave of capital inflow sustaining its advance.
XRP Price Performance – 1 Month. Source: BeInCrypto
The fact that almost all XRP investors are in profit is an unusual phenomenon in the markets. While it generates optimism, it also raises caution regarding the implications in terms of selling pressure.
The combination of on-chain metrics, historical analysis, and technical patterns suggests that XRP is going through a critical moment. While a correction scenario is plausible, there is also room for new highs if confidence is maintained and new liquidity enters the market.
The article Almost 100% of XRP investors record profits: imminent drop? was first seen on BeInCrypto Brazil.
