XRP Analyst Highlights NUPL Metric as Key to Identifying Market Bottoms
A recent analysis from respected crypto market observer StephIsCrypto has drawn attention to a single, often-overlooked metric that may hold the key to understanding XRP’s current market position. Instead of relying on a combination of indicators, the analyst focuses on the short-term holder Net Unrealized Profit and Loss (NUPL), suggesting that this data provides clear insight into where XRP stands in its price cycle.
Read Also: XRP Community Embraces Holder Ranking Trend as Symbol of Pride and Unity
The Role of NUPL in Identifying Market Trends
The NUPL metric tracks whether short-term investors are holding their assets in profit or at a loss. When the indicator dips into what is known as the capitulation zone, it typically signals widespread selling at a loss among short-term holders. Historically, this phase has often marked the bottom of major market cycles for many cryptocurrencies.
StephIsCrypto’s chart compares XRP’s price trajectory with the short-term holder NUPL ratio, showing that each time the ratio entered capitulation territory, a market rebound soon followed. He highlights that these events are not random but consistent, pointing to clear behavioral patterns among investors.
Historical Patterns of Capitulation and Reversal
According to the analysis, XRP’s movement since late 2024 has displayed repeated examples of this dynamic. In October 2024, when XRP traded near 50 cents, the NUPL metric dropped sharply into the capitulation zone. Despite temporary weakness, the market soon reversed, pushing prices toward 4 dollars in the following weeks.
Read Also: LUNC Poised for a Powerful Comeback as Market Optimism Grows
Similar conditions were observed in March 2025 when XRP traded below 2 dollars. Again, the NUPL data showed strong signs of capitulation, followed by a sharp rally that brought XRP closer to 3 dollars. Another notable event occurred in June 2025 when the price retreated near 2 dollars once more. Shortly after, the market recovered to around 3.40 to 3.50 dollars, confirming the predictive reliability of the indicator.
Implications for Current Market Conditions
StephIsCrypto concludes that XRP’s recent price behavior mirrors these historical setups. If the NUPL once again signals capitulation, it may represent a strategic accumulation phase rather than a reason for fear. For traders and investors, understanding this metric could provide a clearer framework for identifying potential market bottoms and timing entry points.
As market volatility continues, the short-term holder NUPL remains a critical gauge of sentiment and potential recovery, offering a data-driven perspective on XRP’s long-term strength.
Follow us on Facebook, Telegram, and Google News.
Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
