The altcoins that dominated the past few weeks are now sending serious warning signals. XRP, Stellar (XLM) and Near Protocol (NEAR) are seeing their deposits on centralized platforms explode — an on-chain indicator historically associated with massive profit-taking.
When tokens flood into exchanges, sellers are positioning themselves. And the current figures leave little room for doubt: the bullish momentum behind these three assets could be in the process of reversing.
Here is a breakdown of the on-chain signals that are putting the most seasoned traders on high alert.
+160% in Exchange Deposits: What the On-Chain Data Reveals
The volume of deposits flowing into exchanges for XRP, XLM and NEAR has surged by +160% over a short period. This type of movement is a classic bearish signal in on-chain analysis: when holders transfer their tokens en masse to platforms like Binance or Coinbase, it is generally to sell, not to buy.
This phenomenon comes on the back of significant rallies across all three assets. XRP posted a spectacular run fueled by optimism surrounding the Ripple lawsuit and anticipation of a spot ETF. XLM followed in its wake, benefiting from the historical correlation between the two tokens. NEAR, for its part, rode a renewed wave of interest in AI-focused Layer 1 infrastructure projects.
When price rises sharply and exchange deposits spike simultaneously, data from CryptoQuant and Glassnode typically points to a distribution phase. Investors who bought at lower levels are looking to lock in gains ahead of a potential correction. This is precisely the pattern now taking shape across all three altcoins.
Cascading Profit-Taking: The Altcoin Market Under Pressure
The profit-taking dynamic is not isolated to these three assets. It reflects a broader market sentiment in which investors, after several weeks of sustained upside, are looking to monetize their positions. Market sentiment is gradually shifting from FOMO toward heightened caution, particularly among experienced traders who monitor on-chain indicators in real time.
On the technical side, XRP is trading within a critical resistance zone following its recent breakout. A massive influx of tokens onto exchanges can generate enough selling pressure to trigger a retracement toward lower support levels. The same logic applies to XLM and NEAR, whose price structures are showing clear signs of bullish momentum exhaustion.
Traders should keep a close eye on liquidity levels in the order books of major exchanges. If buying demand is insufficient to absorb the additional supply generated by these deposits, a technical correction becomes the most likely short-term scenario for all three altcoins.
What to Watch in the Coming Hours for XRP, XLM and NEAR
There are several key indicators to monitor closely. First, the evolution of the Exchange Netflow: if deposits continue to rise without being offset by withdrawals, selling pressure will persist. Second, whale behavior: a shift in their activity from distribution back toward accumulation could signal a price floor forming.
The macro backdrop also warrants attention. A renewed appetite for risk in traditional markets, or a favorable announcement on the crypto regulation front, could counterbalance the current bearish dynamic. But in the absence of a strong catalyst, on-chain data argues for a period of consolidation, or even a correction, before any sustained new upward move materializes. Bitwise Launches First NEAR Spot ETF in the US Following a 160% Rally
For altcoins broadly, this distribution phase is healthy over the long term: it flushes out speculative positions and builds a more solid foundation for the next bull wave. But in the short term, volatility is likely to intensify for XRP, XLM and NEAR.
