Daily Crypto Signals: Bitcoin Faces Correction Risk as XRP Reaches 94% Profitability
Bitcoin enters its seventh week of price discovery with correction signals emerging, while XRP's surge to $3 has pushed 94% of holders into
Quick overview
- Bitcoin is in its seventh week of price discovery, facing potential corrections as it struggles to surpass the $120,000 mark.
- XRP has surged over 500% in nine months, pushing 94% of holders into profit, which historically indicates local tops for the altcoin.
- Japan is set to legalize its first yen-pegged stablecoin, JPYC, marking a significant development in the global stablecoin market.
- Concerns are rising over the security of proof-of-work blockchains following a 51% attack on Monero, with Dogecoin being targeted next.
Bitcoin BTC/USD enters its seventh week of price discovery with correction signals emerging, while XRP’s XRP/USD surge to $3 has pushed 94% of holders into profit territory, historically marking local tops for the altcoin.
Crypto Market Developments
There are a lot of signs that the cryptocurrency market is about to change, and this is a very important time for it. Today’s news includes Qubic’s controversial targeting of Dogecoin after their successful 51% attack on Monero, Japan’s Financial Services Agency getting ready to approve the country’s first yen-pegged stablecoin, and Galaxy Digital’s Mike Novogratz saying that a $1 million Bitcoin price in 2026 would mean economic trouble instead of success.
People are worried about the security of proof-of-work blockchains because the Qubic community decided to go after Dogecoin after successfully carrying out a 51% attack on Monero. With more than 300 votes in favor of Dogecoin as the next target, this might have bigger effects on the security of blockchain technology in the whole cryptocurrency ecosystem.
Japan is going to make history this fall by legalizing JPYC as its first stablecoin backed by the yen. JPYC, a fintech company based in Tokyo, will register as a money transfer business and be in charge of launching the 1:1 yen-pegged digital currency. This currency will be backed by highly liquid assets like bank deposits and Japanese government bonds. This is a big deal because the worldwide stablecoin market is now worth more than $286 billion, and USDT and USDC are the most popular assets.
Bitcoin: Price Discovery Uptrend or Correction Ahead?
Bitcoin (BTC) is at a very important point right now. It’s in the seventh week of its second “price discovery uptrend” since the 2024 halving, and the price is at $117,336. According to prominent trader Rekt Capital, Bitcoin is running out of time to reach new highs because historical patterns show that corrections usually happen between weeks 5 and 7 of the second rising phase. The cryptocurrency just hit an all-time high of $124,500, but it has had a hard time getting over the $120,000 barrier mark.
The timing is similar to what has happened in the past during halving cycles, when Bitcoin’s second price discovery rally has usually finished between weeks 5 and 7. Bitcoin could drop a lot now, but it could also set the stage for new all-time highs in the fourth quarter. Trader Daan Crypto Trades says that Bitcoin hasn’t had two green months in a row in August and September.
This could mean that a “quick flush” could happen before a big rise in Q4. Mike Novogratz of Galaxy Digital adds a warning, saying that while a million-dollar Bitcoin price might seem good, getting to that level by 2026 would probably mean that the economy is very unstable instead of the market growing healthily.
XRP Gains Over 500% in Nine Months: What’s Next?
XRP has had an amazing rise, going from less than $0.40 to its current price of $3.07 in the last nine months, a gain of more than 500%. But this great performance has pushed 93.92% of XRP’s circulating supply into profit territory, which is a figure that has traditionally marked macro tops for the altcoin. According to Glassnode, XRP’s profit levels were similar before large corrections in 2018 and 2021, when the price fell by 95% and 85%, respectively, after achieving similar profit distribution levels.
The technical picture for XRP shows more caution indications, as the cryptocurrency has been moving sideways in a descending triangle formation since it broke over $3. This bearish pattern, which has lower highs against horizontal support near $3.05, suggests that there is a chance of a drop. XRP’s Net Unrealized Profit/Loss (NUPL) indicator has entered the “belief-denial” zone, which is similar to what happened at market tops in 2017 and 2021.
If the price breaks below the $3.05 support level, it could lead to a sell-off that takes the price down to $2.39 by September, which would be a 23.5% drop. But if bulls break over the falling resistance line, this bearish pattern might be invalidated. If institutional demand and the overall cryptocurrency momentum keep supporting the advance, this could lead to a rise to $6.
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