XRP's recent rally to $3 has resulted in nearly 94% of its circulating supply being in profit, according to Glassnode data. Historically, such high profitability levels often indicate a macro top, as seen in early 2018 and April 2021, when prices faced significant reversals after similar profit percentage readings. Currently, XRP's Net Unrealized Profit/Loss (NUPL) suggests a peak risk, entering the 'belief-denial' zone, akin to previous market tops. As profitability rises, the potential for profit-taking increases, heightening the risk of a price drop. XRP is currently consolidating within a descending triangle formation, with resistance at $3.05. A confirmed move below this support could trigger a substantial sell-off, potentially down to $2.39, representing a 23.5% decline from current levels. Alternatively, bullish momentum may require a breakout above resistance to avoid a bearish scenario, as investor sentiment continues to evolve.

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