Recent market data reveals that almost all XRP investors are currently profiting, with 94% of wallets holding gains at today’s prices. This level of profitability has historically preceded sharp declines, but some analysts speculate this cycle may diverge from past trends.
Ripple (XRP) continues to trade above $3, approaching its record highs after climbing more than 500% from $0.40 within a year. According to on-chain figures by Glassnode, this surge has propelled nearly every XRP wallet into positive territory. This unprecedented profitability has raised concerns among market commentators who point out historical examples where similar setups preceded major crashes.
Analysts warn that the widespread positivity could be a warning sign, as selling pressure is expected to increase when most investors are in profit. However, some argue that current conditions differ from previous cycles, driven by increasing holdings of large XRP holders and robust network activity.
Winny, a prominent analyst, highlighted these contrasting factors. He cites two historical examples where profitability exceeded 90% and led to significant downturns in both 2018 and 2021. However, he points out that larger holding levels from institutional investors and high network activity could provide stronger support, potentially mitigating the impact of any correction.
EGRAG Crypto offers a contrasting perspective, predicting potential further rallies for XRP before a significant retracement is likely to occur. He outlines two potential scenarios: if XRP surges to $9, he expects a pullback of around 85%, returning it to its previous price of $1.30; in the more optimistic scenario, if XRP hits $27, a correction of approximately 97% could result in a price drop back to $0.80.
The market remains uncertain as analysts grapple with the potential for sustained momentum or repeat past patterns.