#Altcoins on the Rise#  XRP's Rise Could Stall: 2 Red Flags to Watch Out For.

XRP has been one of the cryptocurrency market's standout performers over the past month. Its price has surged 72% amid a broader altcoin rally fueled by Bitcoin's push toward new all-time highs.

However, two critical on-chain indicators suggest this uptrend may be losing steam, increasing the risk of a near-term reversal.

XRP Traders Prepare to Pull Back When Signals Are in the Red

XRP's exchange reserve—measured using a seven-day moving average—reached a year-high of 2.98 million tokens on July 22nd, worth over $10 million at current market prices.

An increase in an asset's exchange reserve indicates that more tokens are being moved to centralized exchanges and are typically in preparation for sales. When investors transfer large amounts of coins to exchanges, they may be planning to take profits or exit positions.

In XRP's case, the increase to 2.98 million token reserves suggests increased selling intent. If this influx of supply is not met by equal or greater demand from buyers, downward pressure on XRP's price could rapidly increase.

XRP's buyer/seller ratio has remained consistently below one since July 10th. The metric is at 0.94.

An asset's buyer-seller ratio measures the ratio between buying and selling volume in the futures market. Values above one indicate more buying volume, while values below one indicate more futures traders are selling their assets.

XRP's buyer-seller ratio has fluctuated below one for the past two weeks, indicating a selling trend among futures traders as its price has risen. This increasing selling pressure confirms weakening sentiment and, if sustained, could trigger price declines in the next few sessions.

XRP Bullish: Traders Face Critical Test at $3.22

XRP is trading at $3.20, just below its all-time high of $3.66. However, increasing selling pressure increases the likelihood of a correction toward the $3.15 support level in the near term.

A break above this level could extend XRP's decline to around $2.87.

However, if selling pressure eases and new demand enters the market, the altcoin could regain its price peak and potentially make fresh gains beyond $3.66.