XRP has struggled to recover as its price movement continues to reflect Bitcoin’s weakness. The altcoin has failed to establish any momentum in recent days and is approaching the key benchmark of $2.00.
This correlation-induced decline has prevented XRP from regaining key levels, raising concerns among holders.
XRP investors’ losses widen
The Net Unrealized Gain and Loss (NUPL) metric highlights the increasing pressure on XRP. NUPL recently fell from a mild bearish zone to below 0.25, entering the fear zone for the first time in over a year. This indicates that unrealized gains have decreased significantly, leaving many holders at or near a loss.
Sponsored Sponsored
This emotional depression can also trigger a reversal. Historically, fear in NUPL precedes an accumulation period in which the price reaches a psychologically attractive level. XRP could benefit from renewed buy-side interest if investors interpret the current situation as oversold territory.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
XRP is also witnessing a significant macro shift. The squeeze momentum indicator shows a tightening squeeze that has been going on for almost a month. A squeeze reflects a period of low volatility as pressure builds within the price structure, often leading to a strong directional breakout when released.
At the moment, this indicator is pointing towards a possible bullish momentum. If this squeeze resolves on the upside, XRP could see a spike in volatility and the boost it needs to break out of its recent slump.
XRP price needs to escape
XRP is trading at $2.06 after two failed attempts to break out of the $2.20 resistance this week. The altcoin is currently drifting towards the familiar support level at $2.02, which previously served as a strong rebound point.
If XRP regains investor confidence and rebounds from $2.02, the price could return to $2.20. A successful breakout above this resistance could open the door to $2.26, supported by the potential spike in volatility implied by the squeeze.
However, the risk of failure remains. A loss of support at $2.02 would put $2.00 in immediate danger. A break below this threshold could push XRP to $1.94 or even $1.85, invalidating the bullish outlook and signaling the possibility of a more serious correction.
