The world of crypto news has been buzzing this week as XRP’s price surge pushes nearly 94% of its holders into profit, according to on-chain data from Glassnode. The token’s rapid climb above $3.10 marks one of its strongest rallies in years, but experts caution that the current setup resembles past cycles that preceded major pullbacks.
XRP’s Impressive Rally
Over the past nine months, XRP has skyrocketed from under $0.40 to over $3.11 — a gain of more than 500%. This explosive move has positioned the majority of XRP holders in profit, highlighting investor optimism amid the broader crypto bull run. Glassnode’s data shows that as of Sunday, 93.92% of XRP’s circulating supply is profitable.
Such levels of profitability have historically coincided with market tops. Back in early 2018, XRP reached similar conditions before collapsing by more than 95%. Again in April 2021, when over 90% of XRP holders were in profit, the price plummeted nearly 85% from its highs.
On-Chain Metrics Signal Caution
The latest crypto news surrounding XRP suggests that the token may be entering a “belief–denial” zone, according to Net Unrealized Profit/Loss (NUPL) data. This stage typically reflects strong unrealized gains but comes before euphoric peaks and potential market corrections.
In 2017 and 2021, XRP’s NUPL indicator spiked to similar levels just before massive downturns. While investors are not yet in full “euphoria,” analysts warn that the risk of profit-taking will increase if NUPL moves higher.
Technical Patterns Point to a Possible Pullback
From a charting perspective, XRP is currently consolidating inside a descending triangle — a bearish structure defined by lower highs and horizontal support around $3.05. A decisive breakdown below this level could trigger a sell-off toward $2.39, representing a potential 23% correction.
However, bulls aren’t entirely out of the picture. A breakout above descending resistance could invalidate this bearish setup and open the door for XRP to surge toward $6, according to bullish projections. This divergence in market outlook has fueled heated debates across the crypto news space, as traders weigh the risks of a correction against the possibility of extended gains.
Institutional Demand Could Play a Role
Another factor driving attention in the latest crypto news is the potential influence of institutional investors. If fresh capital inflows enter the XRP market, the token might withstand selling pressure and avoid a deeper correction. Broader altcoin momentum and renewed retail participation could also play significant roles in XRP’s next major move.
Still, analysts urge caution. With nearly all holders in profit, the temptation to “cash out” increases, potentially triggering selling pressure. As such, traders are closely monitoring whether XRP can hold above the $3 mark or if a breakdown will follow.
What This Means for the Crypto Market
The developments around XRP highlight a recurring theme in crypto news — strong rallies often create overheated conditions that may not be sustainable without fresh demand. While XRP’s fundamentals, including ongoing adoption and Ripple’s partnerships, remain strong, short-term volatility is likely to persist.
Investors are reminded that every cycle carries risks, and historical patterns suggest that profitability levels above 90% often precede significant corrections. Whether XRP follows its past playbook or defies expectations this time remains to be seen.
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