XRP Soars: 94% of Holders Now Profitable—But Charts Flash a Grim 20% Correction Warning

XRP's bull run has turned nearly all holders into winners—for now. Technicals scream overbought as a brutal pullback looms.

Green turns to red?

The token's parabolic rally has 94% of addresses sitting pretty—until you check the charts. Analysts spot a classic 'buy the rumor, sell the news' setup brewing, with Fibonacci levels pointing to a 20% haircut. Retail's late to the party again, while whales eye exits.

Just another day in crypto—where 'fundamentals' means watching leverage flush through derivatives like a Wall Street bonus round.

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. 

Also Read: Wellgistics Health Launches XRP Payments for U.S. Pharmacies