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The crypto world is buzzing: nearly 94% of XRP investors are now in profit, one of the highest levels ever recorded for the token. But while this surge is fueling excitement, it’s also stirring caution. Historically, similar peaks in profitability have often been followed by steep corrections. So, is XRP entering a new bull cycle—or standing at the edge of another sharp downturn?
XRP rallies to record profitability
According to blockchain analytics firm Glassnode, 93.92% of XRP holders are currently “in the green.” This follows a massive rally of more than 500% over nine months, pushing the price as high as $3.11.
Such a concentration of profitable investors is rare in crypto markets—and it has analysts on edge. High levels of profitability have often marked the top of market cycles, when traders begin cashing out to secure gains.
History offers some striking parallels:
- In January 2018, XRP hit $3.30, only to crash more than 95% afterward.
- In April 2021, it spiked to $1.95, before plunging 85%.
In both cases, a wave of profit-taking triggered a brutal correction.
Market tension builds
Technically, XRP’s chart is flashing warning signals. The token is currently trading inside a descending triangle pattern, often seen as a bearish setup. Support sits at $3.05—if that level breaks, analysts warn the price could tumble to around $2.39 by September.
On the flip side, a decisive breakout above the downward trendline could flip the narrative, with some bulls targeting the $6 range.
Adding to the uncertainty, the Net Unrealized Profit/Loss (NUPL) metric has entered a zone historically associated with “excessive confidence”—a sign that investors may be underestimating correction risks. This same indicator flashed similar signals ahead of major market tops in 2017 and 2021.
Between euphoria and risk
Right now, XRP finds itself in a delicate position. On one hand, it has legitimate momentum and renewed interest from institutional players. On the other, history suggests that when nearly everyone is making money, markets often correct as investors start locking in their profits.
For XRP holders, the path forward likely depends on whether the token can hold its current support and break higher—or whether excessive optimism gives way to another sharp sell-off.
One thing is certain: volatility is back, and XRP’s next move could shape the narrative for the entire altcoin market.