XRP longs build as open interest rises, NUPL flags caution

XRP longs surge, but Net Unrealized Profit/Loss (NUPL) warns

XRP longs have surged, signaling growing risk appetite among traders. However, a set of on-chain gauges led by Net Unrealized Profit/Loss (NUPL) is flashing caution, indicating elevated unrealized gains that can turn into supply if sentiment wobbles.

Based on data from Glassnode, whale accumulation has cooled while exchange inflows are rising, conditions often associated with distribution rather than fresh accumulation. Against that backdrop, a faster build-up in long exposure can leave price vulnerable if profit-taking accelerates.

How XRP long/short ratio and open interest shape near-term risk

The XRP long/short ratio has climbed, but open interest has been weak or even slipping; together this implies positioning is skewed long without commensurate new capital behind it. In such set-ups, abrupt liquidations or modest sell pressure can have outsize effects on price in the near term.

According to Galaxy Digital Research, metrics tied to realized profit and on-chain flows point to increased risk, and the firm advised reducing risk-weighted exposure in XRP if these warnings persist. That stance underscores the difference between sentiment-driven leverage and durable capital inflows.

Independent technicians have also highlighted clusters of overbought signals that preceded sizable drawdowns earlier this cycle. Mati Greenspan, founder of Quantum Economics, described the current alignment of overbought RSI, bearish MACD divergence, and rising exchange inflows as “eerily similar” to prior danger zones.

As reported by TheStreet, repeated rejections at resistance and a breach of supports around the $2.00 to ~$1.85 area have been cited as risk triggers that could open further downside. Absent high-conviction buy-side volume, breakouts tend to lack follow-through, increasing the odds of bull traps.

The caution metric: NUPL and realized cap impulse explained

NUPL measures the share of market cap sitting in unrealized profit or loss relative to holders’ cost basis; high NUPL means many holders are in profit and potentially prone to take gains. Realized cap impulse tracks whether capital, measured by coins’ last on-chain cost basis, is entering or being realized and exiting; negative impulse implies weakening capital support. According to Alphractal, NUPL and realized cap impulse are flashing caution alongside dips below several moving averages.

When NUPL is elevated while realized cap impulse turns negative, the mix often precedes corrections because profit-taking meets softer capital inflows. Combined with a rising XRP long/short ratio and lackluster open interest, the set-up argues for careful position sizing and respect for invalidation levels rather than directional conviction.

Macro-focused traders also warn that once a signal becomes widely known, its edge can diminish through reflexivity. As Alex Krüger, economist and crypto trader, has noted, “when enough people expect the same move, reflexivity often erodes the signal’s effectiveness”, so confirmation from flows and volume remains essential.