XRP’s rally to over $3 has pushed nearly 94% of its circulating supply into profit, marking historically overheated conditions. In the past, such high profitability levels have preceded significant price reversals, highlighting the risk of profit-taking and distribution among investors.

XRP’s Net Unrealized Profit/Loss (NUPL) is showing top risks, entering the “belief-denial” zone observed before market peaks in 2017 and 2021. If NUPL continues to rise towards greed levels for the first time since 2018, the risk of profit-taking and distribution will intensify, potentially leading to a deeper correction in XRP’s price.

XRP’s price is consolidating inside a descending triangle pattern after surpassing $3, with lower highs against horizontal support near $3.05. A breakdown below this support level could trigger a 20% drop towards $2.39 by September. Bulls need to break above the descending resistance line to regain momentum and potentially target $6 in a more bullish scenario.

Read more at Cointelegraph.: Nearly 94% of XRP Holders are in Profit: Has Price Peaked?