Cryptocurrency analysis firm Alphractal has released a compelling analysis of XRP's latest on-chain data. The data suggests that short-term investor selling and speculative pressure on the market signal a critical period for XRP.
Based on the Short-Term Investor Active Supply Ratio chart, Alphractal reported that investors who had recently held positions have been shedding their XRP holdings. This, coupled with increased profit-taking and loss-cutting trends, is creating selling pressure in the market.
The Unrealized Net Profit/Loss (NUPL) indicator has reached its highest levels since its 2021 peak. This level is also similar to the highs seen in 2018. Alphractal argues that such zones have often signaled periods of correction or distribution in the past.
Another notable indicator in the analysis, the Delta Growth Rate, is also trending positive. This rate, based on the 365-day moving average of the difference between market capitalization and realized market capitalization, indicates that price increases are currently outpacing on-chain fundamental value growth. This suggests that speculative inflows are still dominant.
Alphractal suggests that the combination of these three indicators indicates that XRP is in a sensitive period. While short-term investors are selling, NUPL is at levels resembling market peaks, and speculative growth is still outpacing fundamentals. This suggests that XRP may be entering a correction or consolidation phase.
*This is not investment advice.
