XRP, the cryptocurrency launched by Ripple Labs in 2012 to power fast global payments, has surged above $3, sending nearly 94% of its circulating supply into profit, data from blockchain analytics firm Glassnode shows.
The token has gained more than 500% in the past nine months, climbing from under $0.40 to $3.11. XRP is now the fifth-largest cryptocurrency by market value, according to CoinMarketCap.
Such widespread profitability has historically marked overheated conditions. When more than 90% of holders were in profit in early 2018, XRP peaked near $3.30 before losing 95% of its value. The same configuration was seen in April 2021 when the token fell 85% after reaching the peak of $1.95.
Profitability Metrics Signal Warning Signs
One key indicator, Net Unrealized Profit/Loss (NUPL), which tracks the gap between unrealized gains and losses, has now entered the “belief–denial” zone. Analysts note this phase often comes before major tops.
In both 2017 and 2021, XRP reached its highest prices when the NUPL was similar While investors today are heavily in profit, the market has not yet entered the “euphoria” stage, where heavy selling typically begins.
Chart Pattern Shows 20% Downside Risk
On the charts, XRP is consolidating inside a descending triangle pattern, with repeated retests of support near $3.05. An actual breakdown may drive the token to $2.39 by September, a 23% drop.
Nevertheless, in case bulls manage to break above the resistance line, XRP might recover momentum, and some analysts propose targets of up to $3.50.
The next few weeks will determine whether new inflows, which are being spurred by institutional demand and momentum within the broader altcoin market, can soak up possible profit-taking.
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