XRP's recent surge to over $3 has led to nearly 94% of its circulating supply being in profit, highlighting significant investor gains. Historical data indicates that such high profitability often signifies a market peak. Instances in early 2018 and April 2021 saw similar profitability levels preceding drastic price declines. The Net Unrealized Profit/Loss (NUPL) indicator also suggests emerging top risks, matching phases seen during previous peaks. Currently, XRP appears to be in a 'belief-denial' phase, with traders potentially poised to take profits. Technically, XRP is consolidating in a descending triangle, a bearish pattern, vulnerable to a breakdown below $3.05 which could result in a drop of approximately 20%. Investors are advised to be cautious, considering buying pressure may be needed to prevent sharp corrections, especially as profit-taking risks escalate.

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