XRP Price Climbs to $3, But Market Top Indicators Flash Red

XRP price has climbed back to $3.05 after weeks of volatile trading, sparking renewed optimism among investors. The altcoin attempted a recovery, briefly reclaiming key levels. 

However, analysts caution that the rally may be short-lived as indicators show profit saturation, a signal that often precedes downside corrections.

XRP Investors Are Pulling Back 

XRP’s network growth has fallen to its lowest point in six weeks, highlighting a slowdown in new investor participation. This metric reflects the number of fresh addresses joining the network, a vital indicator for gauging long-term adoption and capital inflows. The decline suggests weakening momentum despite the recent price surge.

Sponsored

Sponsored

Lower participation by new entrants reduces buying pressure, limiting XRP’s ability to sustain gains. For cryptocurrencies, expanding network activity often supports higher valuations. With XRP losing traction in this area, the chances of securing consistent upward momentum become smaller, raising concerns about its resilience against future selling activity.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

The supply in profit for XRP has surged to 95%, nearing the historically recognized threshold for market tops. When such a high percentage of tokens are in profit, investors often take advantage of favorable conditions to secure gains, creating strong selling pressure across exchanges.

This saturation of profit could weigh heavily on XRP’s price action. Traders who bought earlier may now exit positions, increasing volatility and dampening bullish momentum. Unless fresh capital enters the market, the current setup leaves XRP vulnerable to a pullback, particularly as macro conditions favor cautious strategies.

XRP Price Is In Danger

XRP is trading at $3.05, positioned above the $2.94 support and facing resistance at $3.07 and $3.12. Breaking through these levels will be a significant challenge as bears attempt to defend overhead barriers, while bulls aim to keep prices above critical support lines.

Given the declining network activity and elevated supply in profit, XRP may struggle to extend its rally. If selling accelerates, the token could fall back to $2.94, testing investor confidence and leaving little room for upward growth in the near term.

Still, bullish traders have not entirely retreated. Should optimism prevail and HODL behavior dominate, XRP could breach $3.12 and establish new support. This move may drive the price toward $3.27, marking a monthly high and restoring faith in the asset’s recovery potential.