XRP analyst JD warns: After the next round of gains, XRP holders will face a 95% loss

Cryptocurrency analyst JD: Key signals appear in XRP's long-term market capitalisation chart, major market prices or implications

Cryptocurrency analyst JD, who is named@jaydee_757 on social media platform X, pointed out that there are multiple technical signals appearing in XRP's long-term market capitalisation chart, suggesting that the digital asset may be about to undergo major market changes. Through analysis of data over the past decade, JD identified three aggregated technical indicators that collectively point to possible breakthroughs in digital assets developed by U.S. technology company Ripple Labs.

Key technical signals of XRP tend to converge

One of the main signals pointed out by JD is the confirmation of stepping back after years of breakthroughs. Previously, XRP's market value exceeded the long-term uptrend support line that has existed since 2017. This breakthrough occurred between the end of 2024 and the beginning of 2025, when the market value increased by more than 500%. Since then, the asset has experienced a correction of more than a year, absorbing some of the gains.

Current price behavior is testing this breakthrough level, which corresponds to a market value range of approximately US$65 billion to US$85 billion. JD believes that successfully holding this level will confirm the effectiveness of the breakthrough and pave the way for higher valuations.

The second technical signal is the potential "bullish engulfing" pattern on the two-month cycle chart. This form is formed when a green positive thread completely covers the entity of the previous red negative thread. If confirmed by a green close, this usually signals a bullish reversal on a macro time scale.

The third indicator is "bullish hidden deviations". Although XRP prices are still hitting lower lows, the Relative Strength Index (RSI) has reached higher lows and currently reads 53.43. Such deviations usually support an upward trend.

Explanation of terms:

• Bullish Engulfing Candle: A K-line pattern in which a larger green (bullish) K-line entity completely surrounds the previous red (bearish) K-line entity and is often regarded as a reversal signal in technical analysis.

JD emphasized that XRP is currently in the phase of backtesting of major breakthrough positions after years of consolidation. If support is maintained, potential bullish engulfing patterns and bullish hidden divergences could drive a sharp rally.

Market Outlook and Potential Price Targets

JD's analysis predicts that if market value support is maintained, XRP will usher in a strong upward trend. In his chart, a blue arrow marks the likely trajectory of the next wave of XRP's rise, which is expected to surpass the level reached at the peak of the previous cycle, when market capitalizations ranged from $180 billion to $240 billion.

Although JD did not give a specific target price for the next cycle, he pointed out that if the market value reaches the US$540 billion region-the highest level shown in its chart-the price of XRP could reach about US$9.

Risks faced by retail investors

JD finally warned investors to be wary of profit-taking opportunities at the end of the analysis. He quoted a common motto in the XRP community: "Know what you hold" and warned that belief alone will not protect holders from a sharp fall after peaking.

Previously, JD had said that 95% of XRP investors may eventually lose profits in the next cycle. He expects that most retail holders will refuse to sell at cyclical highs and instead choose to hold positions through the retracement period, thus becoming "exit liquidity" for investors who sell in a timely manner.

JD warns that after the expected huge rebound, a crash of as much as 95% could follow, and those who stick to holding to highs could miss out on the opportunity to achieve a timely profit.

Explanation of terms:

• Exit Liquidity: In trading, this refers to late-stage buyers whose presence allows other investors to sell at high prices before falling sharply.

Like any market forecast, JD recommends that investors conduct careful research and consider their own risk tolerance before making trading decisions on XRP or other cryptocurrencies.