Altcoin Rally Halted: XRP, XLM, and NEAR Hit by Warning Signs

The altcoins that dominated the past few weeks are now sending warning signals to experienced traders. XRP, Stellar (XLM), and Near Protocol (NEAR) have seen a massive surge in deposits on centralized platforms, an indicator historically associated with profit-taking.

This phenomenon comes after significant rallies across all three assets. XRP's spectacular run was 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 rode a renewed wave of interest in AI-focused Layer 1 infrastructure projects.

The profit-taking dynamic is not isolated to these three assets. It reflects a broader market sentiment in which investors are looking to monetize their positions after several weeks of sustained upside. Market sentiment is gradually shifting from FOMO toward heightened caution, particularly among experienced traders who monitor on-chain indicators in real time.