XRP (XRP-USD) has been trading above $3 in recent weeks, and the momentum has kept almost every holder in profit. According to new data from Glassnode, 94% of XRP’s circulating supply is now profitable. This is a rare milestone in crypto markets and one that highlights just how powerful the latest rally has been.
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Traders have been looking at the $3 level as a psychological barrier, which is a round number that attracts attention and often decides whether rallies extend or fade. By staying above it, XRP has shown resilience after years of sideways price action and ongoing regulatory battles.
XRP Reaches Rare Profitability Levels
For any cryptocurrency, having 94% of supply in profit at once is unusual. In XRP’s case, these levels of profitability have historically lined up with major market moves. Both in 2017 and again in 2021, similar conditions came right before explosive rallies, but also before sharp corrections.
That history is why analysts view the milestone as a double-edged sword. It reflects strong demand and broad gains, but it also creates conditions for some investors to take profit, which can put downward pressure on price.
Profit-Taking Risks Shadow the Rally
The key question now is whether XRP can hold above $3. If it does, analysts see room for a push toward $3.50 or even higher. But with almost everyone in profit, there is also a strong incentive for some holders to sell.
When so many investors are “in the green,” the temptation to cash out grows. Crypto markets are famous for sharp reversals after periods of euphoria, and XRP may be walking that fine line now. A quick wave of selling could trigger a correction even if the long-term outlook stays positive.
What To Watch Next for XRP
For XRP holders, the current situation is both encouraging and risky. Momentum is clearly back, and the community is enjoying the strongest rally in years. At the same time, the sheer size of profitable supply makes this rally fragile.
If XRP can consolidate above $3 and build support, new highs could follow. If not, the recent gains might fade quickly as profit-taking sets in. Either way, the fact that nearly all XRP holders are back in profit is a major shift from the dark days of its legal battles and price stagnation.
At the time of writing, XRP is trading at about $2.93. That is around 4.5% lower for the day. This shows that some profit-taking may have already started. It is an early sign that investors are choosing to cash out after the big run higher.
