Although XRP has surged by over 385% since the end of 2024, analysis based on on-chain data warns that recent buying pressure could be a signal of *entering a risk zone*.
According to blockchain data platform glassnode, over 70% of XRP's realized market capitalization was accumulated between the end of 2024 and early 2025. Realized market capitalization is an indicator that calculates market value based on the last movement point of each coin, meaning most XRP was traded near peak prices during this period. This pattern is similar to previous instances before XRP formed its peak, requiring *caution* from investors.
Another warning signal is the decrease in XRP's on-chain activity. Active wallets for XRP have reportedly plummeted by over 90% since March this year. This suggests a significant reduction in actual usage and trading demand, indicating *underlying weakness* behind the price increase.
Technical analysis also confirms potential decline. Recent XRP price charts show a Falling Wedge pattern, which typically can trigger a decline of over 25%. Analysts suggest XRP might be pushed to a key support line around $1.76.
These signals raise concerns that XRP may have entered an overheated zone in the short term and is exposed to adjustment risks. Investors are advised to closely monitor market trends and adopt a more *conservative approach*.
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