Short and long-term NUPL indicators indicate that investors have retreated to multi-month low levels in their profit-loss balance. This situation suggests that signals of fatigue in the market are increasing and a possible bottom formation is approaching.

From a technical perspective, the hidden positive divergence in the RSI indicator suggests that XRP may enter a rising trend again after weeks of correction. On the other hand, the 'death cross' formation has been completed on the chart. Currently, the levels of 2.44 dollars and 2.59 dollars stand out as critical breakout points that will confirm a possible recovery.

XRP price has decreased by approximately 23% in the last month, experiencing one of the sharpest declines of this quarter. However, the 6% recovery in the last 24 hours indicates that selling pressure has decreased and buyer interest is beginning to re-emerge. On-chain data also reveals that a significant portion of investors has entered the capitulation phase — this is generally considered a signal of a market bottom.

NUPL (Net Unrealized Profit/Loss) metric measures the overall profit situation of investors. As of October 17, the short-term investor NUPL value for XRP dropped to –0.20, reaching the lowest point in the past year. This indicates that most investors are at a loss and that the selling pressure has started to wane.

Looking at historical data, XRP last reached these levels in April and June — in both cases, strong recoveries occurred. For example, when NUPL dropped to –0.13 on April 8, XRP rose by 20% in just four days. On June 22, the rally that began from –0.15 resulted in a 74% increase within a month.

A similar scenario may repeat this time. While technical indicators point to recovery potential, on-chain data also supports the possibility of a bottom formation.