A recent report highlights several indicators for XRP suggesting an approaching critical point. The increase in short-term selling and the rise of the NUPL indicator create a backdrop for potential corrections in the market.
Increase in Short-Term Selling
Market analysis shows a significant increase in the Short-Term Investor Active Supply Ratio, indicating rising selling activity. Many investors are looking to secure profits or limit losses, contributing to short-term downward pressure.
NUPL Indicator Nears Historical Highs
The Unrealized Net Profit/Loss (NUPL) indicator for XRP has risen to levels last seen during the market peak in 2021, resembling the highs of 2018. Historically, such NUPL levels have preceded market corrections or extended consolidation phases, as overbought conditions typically trigger market caution.
Speculative Growth Outpaces Fundamentals
Another concerning signal comes from the Delta Growth Rate, which tracks the divergence between XRP’s market capitalization and realized capitalization. The data indicates that market price is rising faster than the coin’s underlying on-chain value, implying speculation continues to drive momentum rather than fundamental adoption or usage.
Taken together, these metrics suggest that XRP may be heading toward a cooling-off period. While long-term fundamentals remain intact for Ripple’s ecosystem, the current setup indicates that a correction or consolidation phase could be on the horizon if speculative pressure continues to outweigh organic growth.
