According to Cointelegraph, $XRP investors are currently witnessing significant profits, with daily gains exceeding $68 million. This surge is drawing comparisons to market behavior observed before XRP's 2017 peak — a period that ended in a major sell-off. Analysts are now watching closely for signs of a similar pattern repeating.
Over 70% of XRP's realized market capitalization has been built since late 2024, indicating a strong concentration of newer investors. This imbalance creates a vulnerable, top-heavy market structure. Should profit-taking accelerate, it could trigger sharp price declines in the coming weeks.
Investors who entered before the November 2024 rally, when XRP was trading below $0.50, are now up more than 300%. These early entrants appear to be driving the ongoing wave of profit-taking — much like the 2017 cycle, when XRP surged from $0.005 to over $2.50 in under a year before plummeting as profits were locked in.
Further reinforcing the potential risk is the Spent Output Profit Ratio (SOPR) data. For XRP holders in the 3 to 6-month range, SOPR has been declining — a bearish signal — while other cohorts show signs of stability or recovery since April.
As of June 21, the average purchase price for the 3 to 6-month holders is around $2.28. Meanwhile, those who bought XRP 6 to 12 months ago have an average entry point of $1.35. With the token currently trading near $2.14, short-term holders are barely breaking even, and mid-term investors could face up to a 35% drawdown before reaching their breakeven levels.
This data suggests a potential correction toward the $1.50 to $1.60 range, with a possible retest of $1.35 if selling pressure increases. The realized price is approaching a critical support zone around $1.30 — a level that aligns with XRP’s descending triangle pattern, often seen as a bearish reversal signal during an uptrend.
However, not all hope is lost. A strong rebound from the 50-week exponential moving average (EMA) could invalidate the bearish outlook, potentially setting the stage for a rally toward $3 or higher.
As always, investors should conduct their own research and assess risks carefully before making any trading decisions. The crypto market remains highly volatile, and while past patterns offer insights, they don’t guarantee future outcomes
